Mortgage Offer times for Major UK Mortgage lenders.
A mortgage Offer sets out the basis of a mortgage contract. There may be certain conditions to fulfil ahead of Completion such as pay off debts to make the mortgage affordable; and there is also a duty to disclose material changes to your circumstances. However, most of the terms are aimed at mortgage once it’s up and running.
The mortgage Offer document in normal market conditions is a strong indication that the Mortgage Lender is prepared to lend to you and this is important particularly on purchases as you will “exchange contracts” on the back of this promise.
The more solvent the Mortgage Lender is the greater prospect they have of fulfilling their mortgage Offer and in fact due the pandemic some are offering extensions as a matter of course. However, some of the fringe Mortgage Lenders, who rely on the money markets to fund them, renege on their promise and pull their mortgage Offers’ without warning, even at late stages of the house buying process. So Mortgage Lender choice is important and a professional Mortgage Broker such as Niche Advice can help you select the most appropriate one for your circumstances.
On Completion the terms of the Mortgage Offer are activated and become legally binding, and any subsequent changes of the contract such as interest charges, consent to let the property, payment breaks etc, should be confirmed to you by the Mortgage Lender in writing.
How long does a mortgage Offer last for?
It does depend on the Mortgage Lender but it is normally three to six months, and sometimes longer if the property is in the process of being built. Some Mortgage Lenders will consider extensions, typically by one or two months where suitable justification is given by your Solicitors.
Here is an extract on normal Mortgage Offer length taken from the 80 lenders use below:
| Mortgage Lenders | Mortgage Offer Policy |
|---|---|
| Accord | 6 months from Offer with by agreement a possible 3 months extension. |
| Aldermore | 3 months from Offer |
| Barclays | 6 months from application. |
| BM Solutions | 6 months from application. |
| Coventry BS | 6 months from application. |
| Halifax | The mortgage product are individually assigned a completion deadline. |
| Godiva | 6 months from application. |
| NatWest | 6 months from application. |
| Nationwide | 6 months from Offer. |
| Precise | 3 months from the date of valuation and then can be extended every month up to a maximum of 3 months. New Builds 6 Months date of valuation and then can be extended every month up to a maximum of 3 months. |
| Principality | 3 months from Offer with by agreement a possible 3 months extension. |
| Santander | The mortgage product is individually assigned a completion deadline and the mortgage valuation lasts for up to 6 months. |
| Skipton | 6 months from Offer with by agreement a possible 6 months extension. New Build 9 months from Offer with by agreement a possible 6 months extension. |
| The Mortgage Lender | 2 months from Offer. New build 6 months. |
| The Mortgage Works | 6 months purchases | 3 months remortgages. |
| Virgin Money | 6 months from Offer?. New build 7 months and by agreement a possible 7 months extension. |
This information was compiled 29th April 2020, and should be re-checked with the respective lender for the up-to-date position, prior to submission.
If you are looking for advice in the stability of Mortgage Lenders or the length of their Mortgage Offers please do get in touch.
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