In this brief guide, we are going to discuss “how to get a mortgage offer extension “.

How to get a mortgage offer extension?

A mortgage offer will usually be valid for 6 months. To get a mortgage offer extension you will need to ask your mortgage lender for an extension to the mortgage offer. In some cases, the mortgage lender will approve a mortgage offer extension immediately but in other cases, they may decide to carry out new mortgage affordability checks.

If your mortgage affordability has changed since you received the mortgage offer then getting a mortgage offer extension may be much harder and you may even end up having the mortgage offer withdrawn rather than receiving a mortgage offer extension.

You should always check to see how much a mortgage offer will be valid for before applying for a mortgage offer.

To get a mortgage offer extension you should:

Speak to your mortgage broker:

It may be the case that a better mortgage deal has come up since you got your initial mortgage offer and the current mortgage you have is much more expensive or not as suited to your personal circumstances as the other one is.

Your mortgage broker will advise you on what the best next steps are and then guide you further.

Applying for a mortgage offer extension:

If you have a mortgage broker then they will advise you on what the next steps are. This could be sticking with the same mortgage lender and applying for a mortgage offer extension or it could be making an application for a mortgage offer with a new mortgage lender.

To apply for a mortgage offer extension with the same mortgage lender you simply contact the mortgage lender and inform them that you intend to apply for a mortgage offer extension. 

The mortgage lender will then let you know if you will need to make a new mortgage application for a new mortgage offer or if they will simply reassess some of your documents to ensure your circumstances haven’t changed drastically.

What to do before applying for a mortgage offer extension?

If you think you may need a mortgage offer extension then you should carry out your own checks to ensure that your mortgage affordability has not dropped since then. 

You can carry out a mortgage affordability check using a mortgage affordability calculator at Huuti.

This will point out the most pressing issues to you so you can fix them.

If you are unsure of what your credit score is then you should check your credit score from the four credit bureaus in the UK: Experian, Crediva, Equifax and Transunion.

Some of these credit bureaus may charge you a fee to view your credit report so what you can alternatively do is request a statutory credit report which is a free credit report which each credit bureau must provide to you upon you requesting it.

Alternatively, you can also use credit score services such as Checkmyfile and clearscore to check your credit report.

Why you may need a mortgage offer extension?

New build off -plans

Mortgage offer extensions are very common when buying new build properties which are bought off-plan. 

This means you are buying a property which has not been finished and is still in the process of getting final certifications or maybe the foundation or other structural parts of the building are still being built.

In cases like this, delays are very common are you may find that the delay is encroaching upon the validity of your mortgage offer which is usually 6 months. If this is the case then seeking a mortgage offer extension will be your best chance.

Most new build mortgage lenders will be used to this sort of situation and may already have systems in place for mortgage offer extensions

When buying a new build property the developer will either give you a fixed completion date, or completion will be “on notice”.  

A Completion on notice means you will not be given a set date for completion could potentially be at the time when you exchange contracts, but rather your conveyancer will be notified when the new build guarantee provider has issued a cover note confirming that the property is structurally sound.

You will not be able to request your mortgage funds from the lender without this cover note which can only be issued when the property is structurally sound and hence complete.

Property chains

Property chains are also a significant reason why you may need to apply for a mortgage offer extension.

With a property chain you are reliant on person A to move out of their house but person A is reliant on person B to move out of their house and if there are any delays in this chain due to mortgage applications being complex, buying off-plan or a slow conveyancing process then this could affect you too.

Conveyancing delays

Conveyancing delays are another big reason why so many people end up seeking mortgage offer extensions.

If the conveyancing process is being carried out by conveyancers who are simply slow or maybe there have been slow replies from third parties or it could even be that the conveyancing searches uncovered a major issue which needs further investigating. 

All of these factors could cause the conveyancing process to be delayed and this could potentially  require you to seek a mortgage offer extension

FAQs:  how to get a mortgage offer extension

Can you extend a mortgage offer?

Yes, you can extend a mortgage offer but this will be down to the mortgage lender to approve your mortgage offer extension request. If you feel you will need to extend your mortgage offer then you should let your mortgage lender know as soon as possible as the process may take weeks.

What happens when mortgage expires?

When your mortgage offer expires you won’t be able to get the mortgage funds from the lender and may need to reapply

How long before a mortgage offer expires?

Some mortgage lenders may have a mortgage offer which is valid for 6 months whilst others may offer 12 months but you can find mortgage offers which also expire in 3 months.

Using a mortgage broker for a mortgage offer extension

You may want to consider using an independent mortgage broker to get a mortgage.

Mortgage brokers are important as they can access mortgage products from across the whole of the market in some cases. This could be over 11,000 mortgage products. This may have some advantages than going directly to a mortgage lender.

A mortgage broker will look to understand your financial circumstances and then provide recommendations on which mortgage products may be suitable for you.

After giving you these mortgage recommendations, most mortgage brokers will seek your consent to apply for a mortgage in principle. 

This will allow you to shop for your home easier as more estate agents and sellers may take you seriously or it will give you confidence that your remortgage is indeed a possibility before you make a full mortgage application. 

Once you have found a home you want to buy or are satisfied with the mortgage offer for your remortgage then the mortgage broker will then look to get you a mortgage offer.

This will come with a key facts illustration document which details out the features of your mortgage including how much you will pay per month if there are any limits such as early repayment fees, or annual overpayment limits.

If you are happy with everything you can then go on to secure your mortgage with the help of a conveyancer. Your conveyancer will manage the legal searches on the property to ensure there aren’t any issues with it, they will oversee the sales agreement to ensure it is in your best interest, they will manage the transfer of mortgage funds, exchange contracts with the seller or their conveyancer and set a completion date with the seller or their conveyancer.

In this brief guide, we are going to discuss “how to get a mortgage offer extension “. If you have any questions or comments please let us know.

John Bate

John has 22 years of experience in financial services. This spans across financial research, financial services (As a qualified mortgage broker and underwriter), financial trading and sales at global investment banks. While working as a publishing research analyst, he covered European bank credit and advised institutional clients on investment strategies at both JP Morgan and Societe Generale. John has passed all three levels of the CFA (Chartered Financial Analyst) programme.