Once a mortgage lender has offered you a mortgage, you will usually be given a limited time in which to complete your property purchase.
But what happens if you don’t finalise the purchase before your mortgage offer expires? This is a question many of our customers ask and it is one that we will answer in this guide.
Keep reading to learn more but if you would like to know more about mortgage offers and the consequences for you if you miss the deadline, get in touch with our team of mortgage advisers for further advice and support.
How long does a mortgage offer last?
All mortgage offers are valid for a set amount of time; typically between 3 – 6 months depending on your lender and their criteria. Should there be delays with processing, check beforehand whether the offer has an extension period available to avoid disappointments and delays. The exact duration of your offer will depend on your specific lender.
In theory, you should have enough time to complete the house-buying process before your mortgage offer expires but as we all know, life doesn’t always run smoothly.
A number of factors can delay the purchase of a property and as such, it’s quite possible that you could miss the expiration date.
This can be very frustrating but don’t despair! If you are unable to complete your house purchase before your mortgage offer ends, that doesn’t mean your lender will automatically refuse to release their mortgage funds to you. You will have the option of re-applying for a mortgage or asking for an extension on your mortgage offer.
With mortgage interest rates increasing over the last few months, it is now more important than ever to secure a good rate. This is even more important for people wanting to remortgage for debt consolidation. Therefore we advise speaking to one of our mortgage advisors who have expertise in securing the best rate before the rates rise further into early 2023.
Why could a mortgage offer expire before completion?
There are all kinds of reasons why your mortgage offer could expire before the completion date. Some of the more common reasons are listed below.
A mistake on your mortgage application
Your mortgage application needs to be flawless, with no typos, grammatical mistakes, or pieces of missing or inaccurate information.
If there are mistakes on the application, not only will you run the risk of mortgage rejection but you might also slow down the house-buying process. As a result of this, it’s quite possible that you could miss the mortgage deadline.
Please note: a mortgage broker can help you with your mortgage application. They will make sure all of the relevant information is included on the application form, with no spelling mistakes or any other type of error. We are here to help you with your mortgage application at no cost to you so get in touch if you would like to use our services.
A delay in the conveyancing process
Your application form could be perfect but if your solicitor is away on holiday or if the conveyancing searches take longer than expected, the conveyancing process could be delayed.
There can also be other reasons for a delay in the process, which will be frustrating to you if they are completely out of your hands.
A valuation delay
Before granting you mortgage approval, your mortgage lender will arrange a new valuation of the property you intend to buy.
But if they have an influx of mortgage applications from other customers and other valuations to arrange, there could be a delay with your valuation.
A problem with your new build property
If you want to buy a new build, you will be in the hands of the construction company who will need time to build and prepare your new property.
But if there are any construction delays, perhaps because of a shortage of supplies, or if the weather prevents construction work from happening, you may miss the expiry date on your mortgage offer.
Other reasons for a delay in the completion of your home could include staff shortages, inexperienced builders, and poor planning.
Some mortgage providers will give you a longer offer period if you’re buying a new build as they will appreciate the fact that delays could happen. You will need to discuss the possibility of a longer offer with your mortgage lender at the time of your application.
A problem within the property chain
If you are in a property chain where several sales are linked, you’re at the mercy of other home sellers and buyers and the various parties that are working with them.
Property chain issues are a common reason for people needing a mortgage offer extension, so you should alert your mortgage lender as soon as possible if there are any delays in the chain.
Can I extend my mortgage offer?
Yes! Many mortgage lenders will consider extending a mortgage offer so if you are running out of time, you may be able to get an extension from your lender.
How do I get an extension on a mortgage offer?
If your mortgage offer is about to expire, you should speak to your lender as soon as possible. They will need a few weeks’ notice to consider your situation so you shouldn’t expect an immediate answer.
Before making their decision, they will want to make sure that your circumstances haven’t significantly changed. As such, you can expect them to ask for your proof of income and spending along with other up-to-date information before they extend your mortgage offer.
If you do get a mortgage offer extension, you will have a new expiry date. This should give you enough time to complete your property purchase but if you run into any further delays, be sure to give your lender enough notice if you need to ask for another extension.
How long can I extend the mortgage offer?
Extensions on most mortgage offers last between 1-3 months. In some cases, lenders may agree to extend the offer for a longer period, or they may decide not to extend your mortgage offer at all.
Nationwide Building Society, for example, may be willing to give you an extension on your offer of 45 days, provided you are buying a new build and have between 15 and 30 days left on your current mortgage before it expires.
Ultimately, it will depend on your lender’s discretion and the reasons why you want to get an extension. Check with your mortgage lender to find out more information.
Mortgage offer extension refused what can you do?
If your mortgage lender refuses to give you an extension, it is usually because…
- You have applied for the extension too close to the expiry date
- The expiration date has passed
- Your financial circumstances are not as strong as they were, perhaps because you have taken on other loans or because your income has reduced
How can I reduce the risk of my mortgage offer expiring?
There are a number of things you can do to reduce the risk of your mortgage offer expiring.
Work with a mortgage broker
Instead of going through the mortgage process alone, work with a mortgage broker from the very start. If you choose to work with us, we will…
- Help you with your mortgage application to ensure no mistakes are made
- Communicate with all relevant parties, such as your estate agents, building developer, and solicitor, to make sure work is progressing on time
- Search the market for mortgage lenders that will give you a mortgage deal with a suitable offer period
Talk to your mortgage lender
In some cases, you may be able to preempt delays before they happen, such as making sure your application has been filled out correctly with the help of a mortgage broker.
But if you do run into any problems, it is our mortgage advisor’s experience that the sooner you let your mortgage lender know the better, as they may be willing to extend your mortgage offer. How long the extension will be will depend on your situation but many lenders are sympathetic to the needs of their mortgage customers.
Make sure you have a mortgage offer tailored to new build properties
If you are buying a new build property, the lender may be willing to give you a mortgage offer that is longer than the norm. Be sure to talk to them about this at the application stage and if they refuse to give you a longer mortgage offer, speak to a mortgage broker such as ourselves as we will find you a more suitable lender.
Remember the date when your mortgage offer expires
If you know when your mortgage offer expires, you will know how long you have left to get your property purchase organised.
What do I do if my mortgage offer has expired?
If you aren’t able to get your mortgage offer extended and it expires, you will usually have to re-apply for a new mortgage, be that with the same lender or a different lender.
As such, you may have to stump up the cash for the mortgage and solicitor’s fees again, and you may have to apply for a larger mortgage or make a bigger deposit if the price of the property you want to buy has gone up in value. As most lenders require a certain level of income and a decent credit history, you will also have to go through the lender’s various checks again.
This sucks, we know. However, you may be able to get a mortgage deal that is better than the one you applied for originally. So, even if your current deal has expired, know that it wasn’t your only option.
Will I be accepted for a new mortgage?
As your last mortgage application will be noted on your credit report, a new lender will question why your mortgage didn’t go through. This could cause you a problem but as most mortgage lenders understand that delays can happen, you should still be able to get a mortgage provided you meet the particular lender criteria.
Should you get a 2 or 5 year fixed mortgage 2022?
If you do need to re-apply for a mortgage, get in touch with the team at YesCanDo Money. As a whole of market broker, we can access deals from across the mortgage market and can help you find a deal (and an amply timed formal mortgage offer) that is ideally suited to you.
What documents will I need for a new mortgage application?
When applying for a new mortgage with a different lender, you will need to round up the documents you provided previously.
An observation from our mortgage advisors is, that if you’re applying for a mortgage with your current lender, you may still be asked to provide some of these documents, such as your bank statements, as they will want to see if your financial circumstances have changed before they make you a mortgage agreement and then a formal mortgage offer.
Documents include:
- ID documents, such as anything proving your name and address
- Proof of income, such as bank statements and your last 3 payslips (3 years of tax returns if you’re self-employed)
- Proof of deposit, such as a letter from anybody paying for your deposit as a gift
- Records of your spending, such as details of any credit cards and other debts that you are currently making monthly repayments on
It’s a good idea to keep hold of your mortgage documents when you make your first application, just in case your mortgage offer extension is refused and you need to apply for a mortgage.
My mortgage offer expired, can YesCanDo Money help me?
In short, our answer is yes!
Provided you are eligible for a new mortgage, we can search the banks and building societies on the mortgage market to find you a better deal than the one you applied for originally.
We can also support you with your mortgage application, liaise with your mortgage provider, conveyancing solicitors, and other third parties, and give you tailored advice to reduce the risk of you missing your mortgage offer expiration date again.
As we are a fee-free mortgage broker, you are guaranteed to save money if you use our services. So, not only will we help you get a mortgage offer and lower mortgage interest rates but we won’t charge you a penny for our specialist mortgage advice and support.
We are here to help first-time buyers, seasoned home movers, and buy-to-let customers alike, so no matter your personal circumstances, know that we can support you with your mortgage needs.
To learn more, get in touch with our team today using the contact details below.
