In this brief blog, we are going to discuss how long does a mortgage offer last? Buying a house can be a very stressful and difficult thing to do. Getting a mortgage offer is one of those difficult things to do but you may now be wondering how long does a mortgage offer last so you know how long you have to complete the home purchase with the home seller.
What is a mortgage offer?
A mortgage offer is an official letter or confirmation which lets you know that the mortgage lender will provide you with a mortgage.
To get a mortgage offer you will need to make a mortgage application which will require you to fill in a mortgage fact find. Most mortgage lenders will also require a mortgage valuation before they give you a mortgage offer.
How long does a mortgage in principle last?
A mortgage in principle can last between 60 and 90 days. Your mortgage in principle doesn’t mean you will get a mortgage offer.
How long does a mortgage offer last?
A mortgage offer can last from between 3 months and 6 months based on the mortgage lender. Some mortgage lenders may offer you an extension to allow you to complete on your property purchase. In some cases, you may need to get a mortgage offer which lasts as long as 6 months, if not more so if you are buying a new build property that is sold off-plan.
This is because these types of property transactions may usually take longer.
The mortgage offer timeline starts from the day the mortgage lender gives you a mortgage offer.
If your mortgage offer expires before you complete on your home purchase you will, unfortunately, have to reapply again for your mortgage.
If you anticipate any delay in completing on your home purchase you should convey this to your mortgage broker so they can advise on suitable solutions.
How long your mortgage offer lasts will depend on:
If you have had any change of circumstances since you got your mortgage offer
The type of mortgage deal you have been offered
If you are buying or remortgaging
The type of mortgage you are getting
How long is a mortgage offer valid for?
A mortgage offer will usually be valid for 3 to 6 months but this is completely dependent on the mortgage lender.
What happens if a mortgage offer expires?
If a mortgage offer expires you will usually need to apply to the mortgage lender or get a new mortgage offer from a new mortgage lender. You won’t be able to complete on your home purchase if your mortgage offer expires. It is very common for mortgage offers to expire if the property development is delayed or if the searches needed to complete the mortgage takes such a long time.
You will need to complete your mortgage before a particular date which the mortgage offer expires. If you anticipate the mortgage offer will expire before you complete then you may be able to ask the mortgage lender for an extension.
Do you get a mortgage offer before valuation?
You may be able to get a mortgage offer before you get a mortgage valuation but most mortgage lenders will want to provide a mortgage offer only after they have completed their mortgage valuation.
What Happens If My mortgage offer Expires?
If your mortgage offer expires then you won’t be able to complete on your mortgage offer and may need to make a new mortgage application. In some cases, the mortgage lender may be able to extend the mortgage offer but this is usually before the mortgage offer expires so be sure to ask your mortgage lender or mortgage broker how long the mortgage offer lasts.
Most mortgage lenders may be happy to extend their mortgage offer to you as they will prefer to lend to you than lose you as a potential customer.
Getting your mortgage offer extended may be harder if you experience any of the below:
There has been a significant change of circumstances since you got the mortgage offer ( e.g you now have kids or are pregnant)
You are getting a mortgage for a different type of property than you first mentioned e.g a non-standard construction property
You need the mortgage offer to be longer than another 6 months due to delays in the property development.
You have lost your job and hence don’t have any income for the time
Your monthly expenses have increased significantly
Your credit score has fallen quite low
The mortgage deal you took has now expired and is no longer available
Some mortgage lenders may not assess your mortgage affordability when looking to increase how long your mortgage offer lasts but others may insist you make a new mortgage application.
Will the mortgage lender extend your mortgage offer?
There is no guarantee the mortgage lender will increase how long your mortgage offer lasts.
If you’re unsure if you will be able to get an extension on your mortgage offer then you may want to use a mortgage broker who has some experience.
A mortgage broker will usually have experience on what mortgage lenders will usually extend the mortgage offers and how long for. This means they may be able to advise you on the best course of action if your mortgage offer is about to expire.
Why Does A Mortgage Offer Expire?
A mortgage offer expires as the mortgage lender feels that the timeline in which the mortgage offer is valid is enough for you to complete on your purchase and not long enough time in which your circumstances may have changed drastically. Once a mortgage offer expires you won’t be able to complete on the mortgage.
Most mortgage lenders will be happy to extend their mortgage offer to you as long as your circumstances have not changed drastically.
Where Can I Find Out My Mortgage Offer Expiration Details?
You can find when your mortgage offer expires by looking at your mortgage offer letter. It should clearly state how long your mortgage offer will last.
If you are still wondering “ How long does a mortgage offer last?“ then you should ask your mortgage lender or your mortgage broker.
Will I know when my mortgage offer expires?
If you are unsure of when your mortgage offer expires then you can ask your mortgage lender or your mortgage broker.
Most mortgage lenders may send you a letter once your mortgage offer has expired and may even invite you to apply for a new mortgage.
What should you do when your mortgage offer expires?
When your mortgage offer expires you should speak to your mortgage broker or the mortgage lender and inquire on whether you will be able to extend the length of your mortgage offer.
It may be the case that the mortgage deal you applied for previously is now no longer available and you have to make a new mortgage application. In some cases, a new mortgage lender may be more suitable than the mortgage lender who gave you the initial offer.
A mortgage broker will help you know if this is the case.
If you have to make a new mortgage application then you may find that you will have to go through the same mortgage affordability checks as you did before.
A mortgage broker may be able to source mortgage deals from the whole market and these are more mortgage products than the mortgage lender may be able to offer to you.
Should you reapply after your mortgage offer is expired?
After your mortgage offer expires you may need to reapply to the mortgage lender or a new mortgage lender.
You are not required to reapply to the same mortgage lender. The mortgage lender you apply to after your mortgage offer has expired should be based on your current mortgage affordability.
If your mortgage affordability has changed then you may want to use a mortgage broker who may be able to source the whole mortgage market and find a mortgage that fits your current circumstances.
How long does a Nationwide mortgage offer last?
A nationwide mortgage offer may last for between 3 and 6 months but for new build properties, you may have an additional 45 days.
Andy Dean, Nationwide’s head of new build and intermediary support for Nationwide, said: “We’ve listened to broker and builder feedback and the introduction of the automated 45-day offer extension gives reassurance to customers and brokers from the outset that unforeseen circumstances such as build delays can be accommodated.
“Furthermore, the launch of the new build valuation pilot in conjunction with Countrywide Surveying Services further enhances what we offer those looking for mortgages on new build property, with the aim of speeding up the application process and further improving the customer journey.”
How long does a Halifax mortgage offer last?
A Halifax mortgage offer may last between 3 and 6 months. If you are going through the mortgage process but you are still thinking “how long does a mortgage offer last” then you should inquire further from Halifax.
How long does a Santander mortgage offer last?
A Santander mortgage offer may last between 3 and 6 months. If you are going through the mortgage process but you are still thinking “how long does a mortgage offer last” then you should inquire further from Santander.
How long does a Natwest mortgage offer last?
A mortgage offer from Natwest will be valid for 6 months but for home movers and remortgages the mortgage offer is valid for 6 months.
If you are going through the mortgage process but you are still thinking “how long does a mortgage offer last” then you should inquire further from Natwest.
How long does a Barclays mortgage offer last?
“A mortgage offer is valid for a 6-month period from the date the mortgage application is received by our teams.
Any offer that does not complete within this period must be re-submitted as a new application with the exception of New Build Purchase applications which can be fully assessed against current lending standards with refreshed credit search, status documentation and re-offered for a further period of 6 months with a product from the current range. An updated valuation should be requested in all scenarios with the exception of where the tolerance, referred to below, applies. Any subsequent extension requirement will be subject to full re-submission.
The valuation validity period aligns with the offer validity period of 6 months from submission.
Where notice has been given that the proposed property has fallen through and a new property found, a new application must be submitted unless purchase price and mortgage amount are all unchanged and completion is anticipated within 6 months of the original submission. A product will need to be selected from the current range available unless the original product remains available.”
If you are going through the mortgage process but you are still thinking “how long does a mortgage offer last” then you should inquire further from Barclays.
How long does a mortgage offer last HSBC?
A spokesperson for HSBC said: “Our mortgage advisers have undertaken training in preparation for MCD, so we are disappointed to hear of this case. We apologise for the inconvenience that has been caused to the customer.
“Our mortgage offers are valid for six months and customers who have an existing mortgage offer that expires after MCD came into effect will automatically be sent an updated version, offering the same validity duration.
“We will be in contact with the customer to apologise in person and to see how we can put this right, plus we will address any training needs with the mortgage adviser involved.”
If you are going through the mortgage process but you are still thinking “how long does a mortgage offer last” then you should inquire further from HSBC.
In this brief blog, we discussed the question “how long does a mortgage offer last?” If you have any more questions then let us know.
If you need financial advice and you live in the UK then you could contact the Money Advice service over the phone or via chat for impartial advice.
You can also contact the debt charity “Step Change” if you are in debt and need help.