What Happens If Your Mortgage Offer Expires Before Completion?

A mortgage offer is a crucial step on the path to buying a home. Once you have it in hand, everything starts to feel real. But what happens if there are delays? What if your mortgage offer runs out before the property transaction completes?

This scenario is more common than many buyers realise, especially when there are long chains involved, issues during conveyancing, or delays with new build properties. Here is what you need to know if you're facing this situation.

Understanding the Validity Period

Most mortgage offers are valid for a set time period. Typically, lenders offer a validity window of between three and six months. The exact period will vary depending on the lender and the type of mortgage you have applied for.

If your purchase is progressing slower than expected, the first thing to do is check your offer's expiry date. This should be outlined in the formal documentation you received when the lender approved your mortgage.

What Happens When It Expires?

If your mortgage offer expires before completion, you will generally need to reapply. This means another round of paperwork, credit checks, and affordability assessments. If your financial situation has changed in the interim, this could impact your ability to secure the same mortgage terms.

Additionally, there is a chance that the lender's mortgage products may have changed. Rates could have increased, or criteria might have tightened, meaning you might not get the same deal again.

Can You Get an Extension?

In many cases, yes. Some lenders are willing to offer extensions, particularly if your situation has not changed and the delay is clearly outside your control. Extensions can range from a few weeks to several months, depending on the lender.

To apply for an extension, contact your lender or broker as soon as you know there may be a delay. The earlier you raise it, the more likely the lender will accommodate your request. Be prepared to provide updated documentation and an explanation of why the extension is needed.

What to Do If You Need to Reapply

If an extension is not possible, you will need to go through the application process again. This can be frustrating, especially if you thought you were nearly there, but taking action quickly can help you stay on track.

Work with your mortgage adviser or broker to gather updated documents and check if any circumstances have changed that might impact your eligibility. You will want to secure a new offer as soon as possible to avoid holding up the chain or risking the seller pulling out.

Avoiding Expiry Issues in the Future

To avoid finding yourself in this situation again, there are a few proactive steps you can take:

• Keep your mortgage adviser updated on the progress of your purchase.

• Regularly check in with your solicitor to ensure there are no hidden delays.

• If your purchase is taking longer than expected, flag this to your lender in advance.

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A mortgage offer expiring is not the end of the road, but it can complicate your plans. With preparation and good communication, you can minimise disruption and keep your home purchase moving forward.

For more information please get in touch.