Simply put, a mortgage offer is the formal documentation from the lender, confirming the valuation, checks, and approval of your chosen property. It’s provided after you’ve submitted all necessary financial and property details, and the lender has assessed and verified your eligibility.
What is included in my mortgage offer?
Your mortgage offer documents will include your personal information, property details, and the terms of the mortgage. These include:
- Interest rate
- Length of the mortgage initial term (for example two, five, or 10 years)
- Repayment amount and type
- Whether you’re able to overpay
- Any mortgage fees that require payment
- Early repayment charges
How long does it take to get a mortgage offer?
The duration to reach the offer stage varies based on the complexity of the application. Typically, processing an application and issuing an offer can range from 18 to 40 days.
How long is a mortgage offer valid for?
All mortgage offers share a common feature: a set validity period, typically three months but sometimes extending to six.
The start of this period can vary, either from the application date or when the offer is processed. Some offers also specify a deadline for finalising the property sale. Whether you’re a first-time buyer or refinancing, it’s important to thoroughly look at each offer’s terms and validity duration before committing.
What happens once I’ve got my mortgage offer?
Once you’ve received your mortgage offer, you’ll have a seven-day “reflection” window to review its terms and conditions. Throughout this period, your conveyancer is restricted from finalising the mortgage without your consent. While you do have the option to withdraw during this timeframe, please note that it might involve a fee.
What happens if my offer expires?
Should any unexpected delays come up in your property sale, extending beyond the remaining days of your mortgage offer, you need to communicate this to your lender immediately. Depending on your situation and the lenders policies, you may qualify for an extension. Lenders may grant extensions for circumstances beyond your control. However, be aware that extensions could result in additional fees and can be complex.
If you feel like you need to apply for an extension, it’s always advisable to request it before your offer expires. Applying after expiration can complicate the process and it becomes a lot harder to have the extension approved. Failure to secure an extension may mean that you have to restart the entire mortgage application process, including valuation fees and other associated costs.
Given the unique aspects of each mortgage and offer duration, navigating them can be overwhelming.
Want to discuss your mortgage eligibility or application?
Speak with one of our advisors today, who will find the right mortgage to suit your needs and guide you through the offer process. Request a callback from our team online or simply call our office on 01634 968111.
Important information
Your home may be repossessed if you do not keep up repayments on your mortgage.
There may be a fee for mortgage advice. The actual amount will depend upon your circumstances.
The fee is up to 1% but a typical fee is £598.
