What happens if mortgage offer expires

Learn more about how we fact check. Navigate Mortgages In this guide. Can you get an extension on a mortgage offer? What if I can't extend? What about New-builds?

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Check with your lender how much notice it needs, as each lender will have different requirements. How long the mortgage offer is extended for is at the discretion of your mortgage lender , but it could be a month or more. It will also depend on your individual circumstances and the circumstances of the property sale. For example, some lenders will base the extension on the coronavirus pandemic whilst there are mortgage offer extensions for other circumstances, such as delays on new-build homes.

Nationwide Building Society offers an extension of up to 45 days for those buying new-build homes where there has been a delay. Eligibility for these extensions will vary from lender to lender. In some cases, a mortgage offer will expire or be due to expire before the completed construction of a new build property. Developers can overrun on their time scales or there can be delays in which can set back the planned completion of property development.

With an off-plan property, buyers are often reserving properties before construction even begins. With most mortgage offers lasting in the region of 6 months, any delay in the building process may mean the mortgage offer could expire before the home is completed. If you are buying a property off-plan and it is yet to be built, it may be worth working with a mortgage broker and looking into mortgages with longer offer periods or those better suited for new-build homes.

If the lender feels there is a risk, it is within its right to withdraw and refuse a loan. This is why it is strongly advised that you do not take on any other loans or large financial commitments until the purchase is completed.

When this occurs, buyers face the hassle of re-applying for a mortgage, as well as the prospect of extra application and valuation fees. While six months is the standard, some lenders offer specialist new-build products that bump this up to nine months or more.

For buyers looking for a safer option in case of delays, these longer offers can provide some reassurance. Additional application and valuation fees can be a real blow for cash-strapped first-time buyers. So, how do you minimise the risk of mortgage expirations, and what are your options if you run into trouble? All mortgage offers have an expiry date in which you need to complete by, typically between three to six months — although this does vary by lender.

If you or your solicitor has concerns that the expiration term with your selected lender is insufficient, ask your broker to seek out some who have extended offer periods.

Which leads us on to…. While six months is the standard term, some lenders offer specialist new-build products with terms of nine months, others even more. Speak to a self-build mortgage expert to be put in touch with these specialist lenders.

How to get a mortgage offer extension will vary by provider in terms of expense and how difficult it is to secure. But be aware that the process can be tricky with some lenders, and there is likely to be costs associated.