What Do I Do if My Mortgage Offer is Due to Expire Next Month?

Sarah Ryan, Head of Private Client
Author:
Sarah Jones
Head of Property, Licensed Conveyancer
Date:
05/08/2020

Ask your mortgage lender for an extension on your mortgage offer as soon as possible. You might have to give them a few weeks’ notice if you need an extension so you should contact them as soon as you can.

Moving house isn’t always plain sailing, and your mortgage lender should understand that. As Coronavirus has meant that many property transactions have been put on hold, it will come as no surprise to your mortgage lender that there is a delay in completing your property purchase.

But it’s important that you give your lender enough notice, as the recent reductions in Stamp Duty Land Tax mean that there are a lot of buyers wanting to move house before Stamp Duty rates goes back up after 31 March 2021. So your mortgage lender might be quite busy in the current climate.

If you’re concerned about any delays on your new home, our Conveyancing Solicitors can reassure you. Our nationwide team of Solicitors and Conveyancers are experts at moving you through the Conveyancing process quickly, and if there are any delays we can advise you on your best course of action.

For free initial advice get in touch with our Conveyancing Solicitors.

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Can My Mortgage Lender Refuse to Extend the Offer?

Your mortgage lender can refuse to extend your mortgage offer if:

  • You have applied for your extension too close to or after its expiry date
  • Your financial circumstances have changed, for example if your income decreases

If you apply with a few weeks’ notice and your financial circumstances haven’t changed, then your mortgage lender should still give you the extension.

If your financial situation has changed as a result of Covid-19 or furlough, your mortgage lender should work with you to help you manage your finances and assess whether your circumstances you will still be able to afford your proposed mortgage repayments.

What if My Mortgage Offer has Expired?

If you miss the deadline to extend your mortgage offer, you can re-apply for your mortgage either through the same lender or a different one.

But if you can extend your mortgage offer, it will be easier and much quicker than having to re-apply for your mortgage offer. Because if you have to re-apply you’ll have to pay for another valuation and your income and credit history will have to be checked over again.

If you can avoid this, then you will save yourself additional costs and can step into your new home sooner.

How Many Times Can a Mortgage Offer be Extended?

If you had to extend your mortgage offer before Covid-19, due to unforeseen circumstances such as a delay in the construction of a new build house, you might be concerned that you won’t be able to extend your mortgage offer again. But don’t worry, your mortgage lender should understand that some circumstances can’t be helped. When the UK first went into lockdown, most mortgage lenders agreed to extend mortgage offers for at least 3 months for those who were in the process of buying their new home.

No one could predict that the UK would be hit by a pandemic such as Coronavirus. If you’re still being affected by Coronavirus even though lockdown has eased for many, then speak to your lender as soon as you can.

When it comes to mortgage offers, it’s not one size fits all. So speaking to your mortgage lender will help them understand your circumstances and if there’s a good reason for your mortgage offer extension, for example delays because of the effects of coronavirus, then your mortgage lender should extend the offer for you.

How Long Can I Extend My Mortgage Offer For?

This will depend on your mortgage lender, but will usually be between 3 and 6 months.

The amount of time that you can extend your mortgage offer for could depend on your circumstances, but a minimum of 3 months is being offered by most mortgage lenders if your move has been delayed because of Covid-19.

You should keep in mind that the recent reductions in Stamp Duty Land Tax will only last until 31 March 2021. The reduced rates mean that you won’t have to pay Stamp Duty on properties that cost up to £500,000 when buying a property in England, although the rates are slightly different in Wales. So if your property purchase has been delayed it might just be a blessing in disguise, as the reductions only apply to those who complete on or after 8 July 2020 but before April 2021.

Now is the time to move towards completion as soon as you can, so that any other delays can be combatted and you can take advantage of the new Stamp Duty reductions before it’s too late.

Our Conveyancing Solicitors have been working remotely throughout the pandemic, and we will continue to do so to help move you through the conveyancing process as quickly and pain-free as possible.

We know that you might feel stressed and uneasy if you’re having to extend your mortgage offer because your move in date has been put back. But we are committed to taking the weight off of your shoulders and reassuring you that we can help you move into your new home as soon as possible.

For free initial advice call our Conveyancing Solicitors

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