What Is A Mortgage Offer and How Long Does It Last?
Getting a mortgage offer is perhaps the most monumental moment in your mortgage journey.
What is a mortgage offer?
A mortgage offer is usually the final part of the mortgage process. By this point, you’ll have chosen a lender, selected the best deal, and hopefully received an agreement in principle.
The lender will then likely require proof of income, bank statements, and possibly proof of deposit.
Once they’ve checked all of the above, the lender will then most likely carry out a check on the property to make sure you’re not paying more than you should be. A valuation will be taken out by the lender, which they will usually subsidise. This covers their backs and makes sure the property is worth what you’re paying for it.
Some people choose to get a more in-depth valuation, such as a full survey or a home buyers report. Typically, this is to give the buyer some more guidance and peace of mind as to whether any crucial work needs to be carried out.
After all of this, you’ll be issued a mortgage offer. This, in essence, is the lender putting the money on the table so that you can buy the property. Unless you have any conditions set out by the lender in your application, the lender will hand the money over to the vendor, and you’ll get the keys to your new home!
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How long does a mortgage offer last?
How long a mortgage offer lasts varies from lender to lender. Typically, they last anywhere between three to six months, but it’s important to clarify this with your lender.
Lenders calculate offer validity from different starting points—some base it on the date you submit an offer on the property, while others use the date you apply for your mortgage.
In some cases, lenders will even set a specific deadline by which you must complete the purchase. That’s why it’s crucial to understand the offer’s validity terms before signing. If you’re purchasing a new build property ‘off-plan’, you might need to request an extension to align the mortgage offer with the property’s anticipated completion date.
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A MORTGAGE OFFER IS THE LENDER PUTTING THE MONEY ON THE TABLE SO THAT YOU CAN BUY THE PROPERTY.
What happens if it expires?
If your mortgage offer expires before the property purchase is completed, it becomes invalid. In this case, you’ll need to speak with your lender to see if they’re willing to extend the offer or if you’ll need to reapply. Reapplying can mean submitting a fresh application, undergoing new credit checks, and possibly facing higher interest rates.
Mortgage offers are usually valid for a limited time—typically between 3 and 6 months. If the purchase isn’t completed within that window, the offer will lapse.
Should that happen, you’ll likely need to reapply for a mortgage, which involves providing updated financial details, going through another credit check, and possibly receiving a different interest rate—or even being declined—depending on your financial situation or changes in the property’s value.
Letting an offer expire and starting over can delay the buying process, which can be especially disruptive if you’re involved in a property chain.
You may also incur additional costs, such as valuation and solicitor’s fees, when applying for a new mortgage.
While some lenders may offer an extension, this isn’t guaranteed. If your offer is at risk of expiring, it’s essential to contact your lender promptly and consider getting advice from a mortgage broker.
What should you be aware of before accepting a mortgage offer?
Before accepting a mortgage offer, it’s essential to fully understand the terms and conditions. Pay close attention to the interest rate—whether it’s fixed or variable—as this affects both your current and future monthly repayments. Be sure you can comfortably manage the payments, even if rates were to rise.
Review the length of the mortgage term and make sure it aligns with your financial goals. Check for any early repayment charges or penalties that could apply if you pay off the loan sooner than expected.
Take into account all associated costs, such as product fees, arrangement fees, valuation charges, and any other expenses tied to the mortgage.
Confirm the validity period of the offer and make sure you’re aware of any conditions you’ll need to meet. It’s also a good idea to check your credit report for errors that could affect your application and resolve any issues before proceeding.
Finally, avoid applying for additional credit during this time, as multiple credit checks can impact your mortgage approval. Continue managing your existing finances responsibly—stay on top of repayments and avoid missed payments to maintain a strong credit profile.
Final Thoughts
We hope this guide has been useful in helping you get a better understanding on what a mortgage offer is and how long it lasts for.
Should you require any further assistance in your mortgage application, please contact us to arrange a consultation with our expert team of brokers.
As a specialised mortgage broker, we have access to hundreds of lenders. We offer a free consultation with access to a free Equifax Credit Report. With this report, we can analyse your current situation and look at how to move forward.
As with any big financial decision, it is highly recommended that independent financial advice is sought ahead of committing to a specific option, to ensure that all terms are fully understood, the option is the most favourable for the applicant, and that the repayments can be made comfortably.
In addition, it is important to note that with any secured lending, the ultimate consequence of defaulting on the mortgage could mean that the property is repossessed by the lender.
Call us today on 03330 90 60 30 or feel free to contact us. One of our advisors will be happy to talk through all of your options with you.
