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You are here: Home / Mortgages / Change the mortgage offer after its been issued by the lender

by Payam Azadi

Change the mortgage offer after its been issued by the lender

Amend the Mortgage Offer – Extension Affordabilty New Criteria

Extension Requests

A Mortgage Offer is a legal document showing a Mortgage Lender’s intent to lend. It can 

in theory be withdrawn at any point up until Completion (funds release) but if funding 

conditions remain normal the money should be lent providing the conditions are met.

“Common conditions”

in the Mortgage Offer include insuring the building and the sale of another property. There could also be “special conditions” which are more centred on your case in particular such as “the repayment of personal debt or buying another property simultaneously with the proceeds”.

All of these “Offer conditions” will need to be worked through with your Solicitor.

There will also be a deadline for Completion and it’s about this timeframe that this 

series of frequently asked questions relate. 

Frequently Asked Questions about Mortgage Offers. 

Q) How long does a Mortgage Offer last? 

A) The expiry date of the Mortgage Offer will be clearly stated on the Offer document 
itself. As a general rule Mortgage Offers last between three to six months from the date 
the Offer is issued, however, some Mortgage Lenders start this timeframe from the 
application or valuation date. Mortgage Offers for “new build” property might have a 
longer end date to allow for spillage in the build time.

Q) Will my Mortgage Offer be long enough? 

A) You will need to discuss your individual needs with your Mortgage Broker and Solicitor, 
talk to the Seller about potential delays in the chain etc. and look to time your mortgage 
application accordingly

There could be a number of considerations, for example: 

• The property you intend to buy might be going through probate which will 
take months to be agreed upon. 
• You might want to wait until the expiry of an early repayment charge on your 
current mortgage before switching. 
• You could want to coincide the move with a job relocation or the beginning of the term 
time etc.  
• In the case of a “new build,” the property is still under construction.  
• The last is almost endless

Q) Why do Mortgage Lenders set a time limit?

A) The acquisition and setting up of a mortgage requires resources so they do NOT want 
to regularly repeat the exercise. The time limit takes into account business levers which 
pull in different directions and ultimately amount result in a “compromise” as to what 
they believe to be the appropriate length and serve their business interests best.  

In determining the Mortgage Offer length the process would consider: 

• Cost of funding at the anticipated point of completion. 
• Concerns over the economy or political instability and the potential impact on
interest rates and inflation. 
• Affordability calculation lag in the relation to the feed from the latest Office of 
National Statistics Data (ONS data) in times of the national and regional high costs of 
living rises. 
• A consistent policy so that Mortgage Brokers know what to expect and can help 
guide customers. 
• Reference the Mortgage Offer length of competitors. 
• Appetite to attract new business at a given time. 
• Protect service standards. 
• Manage holiday periods and pandemic concerns. 
• Manage the end of specific housing schemes such as Help to Buy that have their 
own deadlines to meet. 
• Then at a micro level manage the risks within “specific cases” that might occur over the 
Mortgage Offer duration: 

•  Property Prices. These change over time and generally up so where’s the 
concern here? Well there might be major changes in the area such as a car factory 
closure affecting the local economy and jobs; the mothballing of a planned new 
shopping centre or annual tourist event; the relocation of flight destinations from 
the local airport; the granting of planning permission to build a high rise block 
next to your property; or the noticeable increase in crime in the area. 

The Mortgage Lender might have changed their panel surveyors due to 
unsatisfactory work or distanced themselves from certain geographic areas or 
property types. It could be they have been lent too much on a certain 
development or have concerns over the value of the stock there.

•  Affordability model changes. The Mortgage Lenders tend to review their 
affordability models a couple of times a year (and more in high inflation 
conditions) this could particular harm certain demographics say families with a 
high number of children. The Mortgage Offer deadline allows them to manage out 
changes to the policy.

•  Policy changes / risk appetite. The Mortgage Lenders could for instance limit 
Self Employment mortgages to say 75% to the purchase price for a period to 
reduce their exposure to the sector or withdraw from 95% lending etc. Again, the 
Mortgage Offer deadline allows them to manage the change in philosophy. 

Income assessment. Underwriting is carried out during in the application 
process based on past, current and future prediction of earnings. There are also 
weightings given to the various components of income. It is a snapshot taken at 
one moment in time and the Underwriter might end up with a different conclusion 
say six months down the line when a greater track record is demonstrated and 
perhaps a different set of income rules are applied. 

Q) Do I have to notify Mortgage Lenders of changes in my circumstances
during the Mortgage Offer period?

A) Yes, significant changes need to be divulged to The Mortgage Lender. The Mortgage 
Lender will want to be sure they are lending “responsibility” and not “recklessly” as 
ultimately this is to ensure you do not end up in financial difficulty. The start point would 
be to discuss the change with your Mortgage Adviser to determine whether it a “material 
change” to your circumstances. 

Q) What is seen as a “material change” to my circumstances? 

A) Any base level fact that changes the terms of the Mortgage contract or can affect your 
ability to pay it. 

For example:  
• Major income changes such as Job lost, demotion, annual bonus to stop, state 
benefits withdrawn etc.
• Expecting a new financial dependent i.e. unexpected pregnancy or elderly 
parent moving in to be looked after.
• New credit commitment taken out or no longer planning to clear a debt.
• Looking to apply in your sole name rather than a joint application or changing 
your name.
• Changes to purchase price, mortgage amount, repayment type or term.
• Changing the property address, configuration or usage.

Q) What are the potential outcomes of an Offer Extension request? 
A) Mortgage Lenders take different approaches, and you should be guided by your 
Mortgage Adviser and Solicitor but here is a list of potential outcomes. As you can see 
they can be far reaching so a Mortgage Offer extension request should really be the last 
resort. 
• New credit search. This would reveal any new credit taken and recent credit 
conduct. Any changes would trigger a new underwriting assessment.
• New affordability calculation. The current steady rise high costs of living has 
seen some of our mortgage applicants see amount they can borrow fall by tens of 
thousands of pounds.
• Additional documents needed to bring your file up-to-date.
• Fresh valuation. The property might be appraised at the same value and will 
alert the seller of potential difficulties with your mortgage. 
• Product change.A particular problem in a market where rates are rising.
• Policy change.The Mortgage Lender might not lend to customers with your 
profile anymore.
• Insist on a new application. Re-submission of an up-dated form and full set of 
documents and references. Notes from the previous application should be carried 
across.
• Re-assessment / Straight decline.
• Re-issue a new Mortgage Offer but at a different length. 

Q) What are the potential outcomes of an Offer Extension request? 

A) Some Mortgage Lenders will accept the request from Mortgage Brokers but the vast 
majority want this news delivered by your Solicitor. 

The reason is they want to make sure the request is absolutely necessary and only the 
Solicitors who are working through the legal process and are in touch with the Sellers will 
know this for sure.  
Mortgage Lenders exist to make money on lending however Mortgage Offer Extension 
Requests eat into their profits as additional work needs to be completed. This can also 
throw up unwanted information which the Mortgage Lenders cannot ignore and have to 
act on adding to the administrative burden and potentially the need to tell applicants 
they can no longer lend – so you can see why they would want to avoid Mortgage Offer 
Extension Requests unless absolutely necessary.

Q) When should a Mortgage Offer Extension Request go in?

A) This is subjective but in my opinion at least two weeks before the current Mortgage 
The offer expires to allow the Mortgage Lender time to assess, and request any new 
requirements, and communicate the outcome

Q) What information needs to be in the Mortgage Offer Extension Request?

• The new expected completion date.
• Reason for why the request is needed e.g. wait on a local authority search.
• The milestone the Solicitor is up to e.g. exchange of contracts, certificate of title 
in etc. 

Q) Where should my Mortgage Offer Extension Request be sent to?

A) Normally the Solicitor or sometimes the Mortgage Broker by email. It is sensible to 
make a call to them after the request has been submitted.

They in turn will forward to their respective contacts in the bank.

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Payam Azadi

Author: Payam Azadi

Payam Azadi is a partner at Niche Advice who are whole of the market Independent Mortgage Brokers. His role is very much focused on Property financing both on residential and commercial lines. To get in contact with him please click here.
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AS A MORTGAGE IS SECURED AGAINST YOUR HOME OR PROPERTY, IT COULD BE REPOSSESSED IF YOU DO NOT KEEP UP THE MORTGAGE REPAYMENTS.

If you are thinking of consolidating existing borrowing you should be aware that you may be extending the terms of the debt and increasing the total amount you repay.

Niche Advice Limited is a Credit Broker and does not lend money directly to clients. Niche Advice Limited is authorised and regulated by the Financial Conduct Authority. FCA Number: 750263.

Commercial Buy-to-Let and commercial mortgages are not regulated by the Financial Conduct Authority.

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