How Long Does a Mortgage Offer Typically Last?
We all know that buying a home can be complex, and many complications can slow you down.
You’ll need an official mortgage offer from a lender to buy property. So, it’s a good idea to keep an eye on when your mortgage offer expires and whether you’ll need to make another mortgage application.
The length of mortgage offers vary from lender to lender, but to successfully complete your purchase, it’s important to know how long your offer will last. That way, you’ll be able to prepare for the future and plan accordingly should there be any bumps in the road.
What is a mortgage offer?
A mortgage offer is when a lender officially accepts you for a mortgage. This is different from a Mortgage in Principle (sometimes called a Decision in Principle or Agreement in Principle), where the lender will indicate the deal they’d be willing to give you in theory.
The borrower can use this figure when applying to purchase a home to get an idea of what they will be able to afford. Mortgage in Principles are very useful tools that help improve your credibility as a serious buyer and give the sellers confidence in you as a potential purchaser.
However, to complete the purchase, you’ll need to have officially made a complete application for a mortgage and have had it accepted by a mortgage lender.
How do I get a Mortgage in Principle?
To obtain a Mortgage in Principle, you will have to submit some details to a lender, including basic information about your income, your credit score and how much you’re aiming to borrow.
Does a Mortgage in Principle guarantee you a mortgage offer?
No. When you apply for a mortgage, you’ll have to supply many more details, and they’ll run more affordability checks. If they find a reason why they can’t lend to you, your application will be denied.
How long does a Mortgage in Principle last?
A Mortgage in Principle generally lasts between 60 and 90 days.
How long does an official mortgage offer last?
It depends on the lender, but typically, the offer will be valid for 3-6 months once your application has been accepted.
It’s important to keep on top of the date the offer was made for you, mark off when it will no longer be valid and work within that time frame. If your offer expires, you might have to go through the application process again, although you may be able to request an extension from the lender.
When should I apply for a mortgage?
It’s important to get your timing right when you’re applying for a mortgage. Your offer won’t last forever, and so to minimise stress and make it easiest on yourself, it’s best to hold off making an official application until you’ve had your offer on a home accepted.
My mortgage offer is close to expiring; how do I request an extension?
The golden rule is to keep on top of the dates. As soon as you suspect your mortgage offer might expire before you’ve closed the deal on a property, you should let your lender know. The sooner you alert them, the more likely it is that you’ll be granted an extension.
Some mortgage providers specify a notice period, and you’ll have to comply with that time frame to be given the extension.
Reapplying for a mortgage
Unfortunately, there are no shortcuts here, and if you can’t attain an extension, you’ll have to go through the entire application process again.
Remember, your lender will have to run a hard credit check which could impact your rating. However, so long as your circumstances haven’t changed, the likelihood is that you’ll be accepted for the same deal as before.
We do the hard work for you
We understand that keeping on top of your mortgage expiry can seem like one more thing to worry about in an already stressful process. The Lending Channel aims to take some of the weight off your shoulders by sourcing you the best mortgage deals that are most suited to you.
If you know you’ll need an offer that lasts longer; we can help. If you need to apply for an extension, we can help. We’re with you every step of the way.
The Lending Channel is an experienced mortgage broker and is fully authorised and regulated by the Financial Conduct Authority (FCA). We are an accredited member of the National Association of Commercial Finance Brokers (NACFB).