In this brief guide, we are going to discuss getting a “HSBC mortgage offer extension” and what to do if you are not able to get a HSBC mortgage offer extension.
You may be looking to get a HSBC mortgage offer extension because your HSBC mortgage offer is about to run out.
This could be due to the fact that you are about to buy a new build and you have completed the process and exchanged but the new build you are buying is being bought off-plan and hence you are unable to complete on the purchase until the property is habitable and has been certified by building control.
Another major reason why mortgage offers expire is that buyers and sellers are caught up in a property chain which could take months to untangle.
HSBC will usually provide a mortgage offer which is valid for between 3 and 6 months.
How to get a HSBC mortgage offer extension?
To get a HSBC mortgage offer extension you should simply contact HSBC mortgages and inquire about how to get a mortgage offer extension.
Explain your situation to the adviser in detail and have all your documents and reference numbers to hand.
You may get a decision on the phone or be told that they will get back to you.
Ensure you explain any deadlines on which you are working within.
In some cases, HSBC may offer a mortgage extension but if they don’t then you will need to get a new mortgage offer in order to complete your home purchase.
What if HSBC does not offer you a mortgage offer extension?
It may be the case that HSBC refuses to extend your mortgage offer and you end up without a mortgage which is needed to complete on your home purchase.
In this case, your only option will be to apply for a new mortgage and get a new mortgage offer.
In any case, it is always worth reassessing your mortgage options before completing on a mortgage as things may have changed and you may be eligible for a better mortgage offer.
This is especially true when so much time has elapsed since you initially got the HSBC mortgage offer.
You may indeed be able to save money on mortgage interest repayments if you are eligible for a much cheaper mortgage from HSBC or a different mortgage lender.
The downside of having to apply for a new mortgage is that you will have to pay the same mortgage fees which you incurred when you made your initial mortgage application.
Mortgage valuation fees
Mortgage booking fees
Mortgage arrangement fees
Mortgage fund transfer fees
You can either apply for a new mortgage with HSBC or with a different mortgage lender.
Applying for a second mortgage offer within a short time does have some riks attached to it and it may be more likely that you get rejected if you are applying to a new mortgage lender.
This is due to the fact that the mortgage lender will see on your credit file that you had previously made other mortgage applicationsn(your HSBC mortgage application) and may wonder why you didn’t proceed with the HSBC mortgage.
You should ensure you explain your case to the mortgage lender to increase your chances of getting a mortgage.
If your HSBC mortgage offer has expired and HSBC do not want to offer a HSBC mortgage offer extension then it may be a good time to speak with a mortgage broker to understand your mortgage options.
Other things to consider
Reapplying to government schemes
Aside from having to get a new mortgage offer you may also have to extend or reapply for any Government schemes which you had used to initially get your HSBC mortgage offer.
You should make sure you explain to the government scheme provider that you have had to apply for a new mortgage offer due to your HSBC mortgage offer expiring.
Property may be sold
You should also be aware that once your HSBC mortgage offer expired your reservation or hold on the property you were intending to purchase may have also expired and the property developer or seller may well be within their rights to sell the property to another person without informing you or being required to wait for you to get a new mortgage offer
Mortgage rates may have risen
Another thing to consider is that the mortgage rates may have risen in the period since which you got your HSBC mortgage offer and hence the new mortgage rates available to you may make a mortgage unaffordable.
Use a mortgage broker for your mortgage in principle
You may want to use an independent mortgage broker to help you get a mortgage on your new home.
Mortgage brokers are important as they can access mortgage products from across the whole of the market in some cases.
This could be over 11,000 mortgage products. This may have some advantages rather than going directly to a mortgage lender.
A mortgage broker will look to understand your financial circumstances and then provide recommendations on which mortgage products may be suitable for you based on your mortgage affordability.
After giving you these mortgage recommendations, most mortgage brokers will seek your consent to apply for a mortgage in principle.
This will allow you to shop for your home as more estate agents and sellers may take you seriously and it will also give you confidence that your mortgage is indeed a possibility before you make a full mortgage application.
Once you have found a home you want to buy and are satisfied with the mortgage offer for your mortgage then the mortgage broker will then look to get you a mortgage offer.
This will come with a key facts illustration document that details the features of your mortgage including how much you will pay per month.
It will also contain information on if there are any limits such as early repayment fees, or annual overpayment limits.
If you are happy with everything you can then go on to secure your mortgage with the help of a conveyancer.
Your conveyancer will manage the legal searches on the property to ensure there aren’t any issues with it.
They will oversee the sales agreement to ensure it is in your best interest, they will manage the transfer of mortgage funds, exchange contracts with the seller or their conveyancer, and set a completion date with the seller or their conveyancer.
This will then bring an end to the conveyancing process, at which point you will receive the keys to the house and move in.
In this brief guide, we discussed getting a “HSBC mortgage offer extension” and what to do if you are not able to get a HSBC mortgage offer extension.
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.