Mortgage offers only last for a limited time, so any delays in proceeding with the mortgage, such as setbacks with buying a house, could mean your mortgage offer is no longer valid.
Sometimes, this situation cannot be avoided. If you are wondering where you stand if your mortgage offer could expire, this article provides some helpful guidance.
What is a mortgage offer?
A mortgage offer is a loan offer provided by a lender once an application has been approved. It includes the loan amount, interest rate, term length, monthly payments, and an expiry date.
How long does a mortgage offer last?
The length a mortgage offer lasts varies from one lender to another. Generally, offers last for three to six months but may be longer. For example, a mortgage offer for a new-build property could be valid for nine months.
Can you extend a mortgage offer?
Yes, it is usually possible to get an extension for a mortgage offer if there is an acceptable reason. Lenders will often approve an extension if a short delay is holding up proceedings, such as conveyancing work taking longer than expected. The lender will check that your financial circumstances have not changed before agreeing to an extension.
What happens if your offer expires?
The first option to explore is to request an extension from the lender. If the lender declines or the offer has already expired, you may need to reapply for a mortgage, which will involve completing the credit checks and affordability checks again.
