Buying a house is rarely straightforward and you may experience hiccups along the way which cause you to have to delay things. If this is the case then you may be asking the question “How long does a mortgage offer last?”
So Exactly How Long Does a Mortgage Offer Last?
How long your mortgage in principle lasts depends on your lender. Most mortgage lenders have a validity period of between 3 and 6 months but it depends upon:
- The type of mortgage you have applied for
- The deal you have been offered
- Changes in your circumstances
- Whether you are buying a property or remortgaging
What Happens If My Offer Expires?
In most circumstances your lender will simply extend their offer to you, after all it is in their interest to lend you money – this is what they do and you are prospective customer!
Difficulties may arise however your circumstances change, for example:
- There is a drastic negative change to your income.
- Your outgoings have hugely increased, now making affordability an issue.
- There are significant changes to your credit score.
- Your mortgage offer / deal has expired and is no longer available.
How Can I Make Sure My Mortgage Offer Stays Intact?
You can’t, it will be up to your lender to decide whether you are still eligible.
The best way is to instruct a mortgage broker on your behalf. It is their job to know the ins and outs of the mortgage deal including the expiry date of the offer. If for whatever reason your current mortgage in principle agreement is no longer viable then a mortgage broker has access to lots of other deals (sometime unique to just them) to put you together a new offer.
Why Does A Mortgage Offer Expire?
Mortgage offers come and go and they have a finite lifespan. Also you will be made the offer on the understanding of your current circumstances. Everybody’s personal situation changes from time to time and an open ended offer would not be in the lenders interest to keep an offer on the table forever.
Again, we should state though that most lenders are happy to extend their offer to you as long as your situation does not change significantly for the worse (see above).
Where Can I Find Out My Mortgage Offer Expiration Details?
Once you been offered a mortgage in principle you will be given some terms and conditions. You should discuss these with your lender or the mortgage broker. It’s easy to miss some critical details as there will be a lot to go through during this exciting time.
In short you should check your terms or speak to your arranger to find out if you are not sure.
Will I Be Notified That My Offer Expires?
The chances are that you will be become aware that your completion date has passed or is due to go beyond the expected date and this will likely raise a personal alert regarding your offer. Most people at this point will be speaking to their lender or mortgage broker so you are likely to find out what will happen next. Once your deal has expired you will normally be notified regardless but in most circumstances it is likely you will have already covered this topic before the expiration date arrives.
What is the Best Course of Action After it Expires?
Most lenders will grant you an extension of the offer. It is in their interest to lend you money unless affordability is now an issue.
If you are unable to secure the same deal (and this is why we recommend a mortgage broker to our readers) then you should be able to reach a similar deal elsewhere if not with the current provider anyway.
A mortgage broker has access to lots of deals, more than a single lender and often can have whole of market access meaning that they can scour and source the deal which is right for you.
Do I Need To Reapply If My Mortgage Offer Expired?
In most instances an extension to the offer should suffice but if you do need to reapply (perhaps you need to go for a new deal) then all of the paper-work and preparation will have already been done making the new application smoother and more likely to succeed as you have been approved previously by a lender.
Why Your Mortgage Offer May Expire
If you are reading this article because you are at the start of your purchase you may not yet be aware of the things that can affect your completion date from being extended.
The answer depends if you are in a chain or not, also if you are buying a new build property.
Being in a chain means that everybody buying and selling is reliant upon each other and all of their solicitors and people dealing with the paperwork in between to act in a timely manner. Your proposed exchange and completion dates often don’t work out because life get’s in the way.
Simple reasons such as somebody dealing with paperwork in the chain has too much work on their desk and didn’t get around to your case quickly enough can affect things. Also, surveys can reveal things not previously known that require to be remedied before things can progress. Usually these things are found out before an exchange date occurs but not always.
My wife and I moved last year and damp was picked up in our survey. We couldn’t see the damp and we had lived in our property for ten years. The buyer came to have a look and agreed with us that you couldn’t see the damp and would tackle it after they moved in.
However, even after we had arranged a date for exchange and the time was drawing closer (and also I may add after several other delays due to simple things like the buyer not going into the estate agent when they said they would to sign paperwork etc) they decide a few days before exchange that they wanted us to deal with the damp after all.
We paid for a more in depth survey to be carried out by a damp expert and give a price of £1000 to tackle the issue.
We didn’t want to pay the fee so we went back to the negotiation table. Not surprisingly at this point the buyer didn’t want to budge, but then neither did we.
It was a case of “who blinks first”. We knew however (being from a small town) that they had already give their notice period to their landlord (they were renting). Also, we were moving into a new build property which wasn’t going to fully finished at the time it was supposed to be so we anticipated moving into temporary accommodation anyway so for that reason we were were prepared to wait it out for a new buyer. They blinked first.
A week after exchange they came back with a new date.
This is a typical scenario that can occur at any time and one of the reasons why buying and selling a home can be stressful, it is considered to be one of the most stressful things you can ever do.
People also ask:
How long does a mortgage offer last Nationwide?
According to the Nationwide website: Offer validity periods vary between 3 and 6 months but this has now been extended by a further 45 days for new build properties which are automatically granted for 6 month validity.
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 mortgage offer last Halifax?
There is no specific information from Halifax on this issue but having researched this with people who either currently have a mortgage with Halifax or are in the process of buying a property with Halifax as their lender the period of validity is between 3 and 6 months.
See https://www.halifax.co.uk/mortgages/first-time-buyer-guide/making-offer/ for more information.
How long does a mortgage offer last Santander?
Santander are another lender who do not specifically divulge a period of validity so once again their mortgage offer validity period will be between 3 and 6 months depending upon their offer. You can read more here:
How long does a mortgage offer last Natwest?
First time buyers with Natwest have a validity period of 6 months, home movers or re-mortgages are valid for 3 months.
How long does a mortgage offer last Barclays?
“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 !!!8216;New Build Purchase!!!8217; 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.”
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.”