Finding your dream home and securing a mortgage to buy it is one of the most exciting experiences of your life. However, property purchases often take time and there may be some obstacles along the way. It’s  important to know how long your mortgage offer lasts. You’ve worked hard to get a good deal, so you want to make sure you can complete the process before the offer expires. In this guide, we’ll explain how long mortgage offers are usually valid, what to do if your offer is about to expire, and how to extend it if you need more time. 

Standard mortgage offer validity periods 

Most mortgage offers are valid for around three to six months. The exact time can vary depending on your lender and your situation. Some lenders offer shorter validity periods if your mortgage is for a higher amount or if the market is moving quickly. 

There are also a few things that could influence how long your offer lasts: 

  • Property value: If property prices change during the process, your lender might adjust the validity of your offer. 
  • Financial situation: If your finances change after you’ve received the offer (for example, a change in your job or a drop in your credit score), the lender may need to reassess your offer. 
  • Interest rates: If interest rates go up, the lender may shorten the validity period to make sure the deal remains relevant. 

It’s important to keep track of your offer’s expiration date to make sure you don’t miss out. 

Steps to extend your mortgage offer 

If your mortgage offer is about to expire, don’t worry – it’s possible to extend it. Here’s what you need to do: 

  1. Contact your lender early: Don’t wait until the last minute. Get in touch with your lender a couple of weeks before your offer expires. Let them know you’re still in the process of completing the purchase and need more time. 
  2. Provide updated information: Your lender may ask for updated bank statements or proof of income. This is to ensure your financial situation is still stable.
  3. Request the extension: You may need to request the extension in writing. Your lender will tell you the next steps. 

The sooner you start this process, the better. It gives the lender time to review your request and extend the offer smoothly. 

When and how to request an extension 

You should request an extension well before your mortgage offer expires. Ideally, you should reach out about 2 to 3 weeks before the expiration date. This gives your lender enough time to process the request and gives you peace of mind. 

Make sure to explain why you need the extension and be clear about the situation. If the delay is because of issues with the property purchase or other delays that are out of your control, let them know. 

Common extension periods and requirements 

When your mortgage offer is extended, the length of the extension can vary. Some lenders may offer a 30-day extension, while others may extend it for up to 3 months, depending on the situation. 

To extend the offer, your lender may require you to provide: 

  1. Updated proof of income: This is to confirm that your financial situation hasn’t changed. 
  2. A new property valuation: If the delay has been long, your lender may ask for a fresh valuation to make sure the property is still worth what was agreed. 
  3. An affordability check: The lender may check if you can still afford the mortgage, especially if there have been changes in your financial situation. 

These checks are important to ensure that the mortgage offer is still valid under the current market conditions. 

What to do if your offer expires 

If your mortgage offer expires and you haven’t completed the purchase, don’t panic. You still have options: 

  1. Reapply for a new offer: If your offer expires, you can apply for a new one. Keep in mind that a new application might involve another credit check, which could impact your credit score. 
  2. Consider your options: If your situation has changed or the housing market has shifted, you might want to consider reassessing your decision to buy. A new mortgage offer might have different terms based on your current circumstances. 
  3. Talk to a broker: If you’re unsure whether to extend your offer or apply for a new one, it can be helpful to talk to a mortgage broker. They can guide you through the process and help you find the best deal for your situation. You can find a broker via Pepper Money.  

Financial considerations in an expired offer 

If your mortgage offer expires, there are a few financial things to think about: 

  1. Interest rates: If your offer has expired and interest rates have gone up, you may get a higher rate when you reapply for a mortgage. 
  2. Extra costs: Reapplying for a mortgage may come with extra costs like new property valuations or fees. Make sure you’re prepared for these additional expenses. 
  3. Changes in your financial situation: If your finances have changed – like if you’ve taken on more debt or your income has dropped – it might be harder to get approved for the same mortgage amount. 

Make sure you understand these potential impacts before reapplying for a mortgage. 

Communicating with lenders on extensions 

Clear communication is key when your mortgage offer is close to expiring. If you need an extension, contact your lender as soon as possible. Provide all the information they ask for and don’t hesitate to ask any questions you have. Lenders appreciate when customers are proactive about the process, and it can make things run more smoothly. 

Conclusion 

If your mortgage offer is about to expire, don’t worry – there are steps you can take to extend it or reapply for a new one. By acting early and staying in communication with your lender, you can keep your home purchase on track. Make sure you understand the financial implications of an expired offer, and don’t hesitate to ask for help from your lender or a mortgage broker if needed. 

For more information about mortgage offers or to speak with one of our trusted brokers, get in touch today. We’re here to help you through every step of the mortgage process.