Your mortgage offer won’t last forever. Find out how long they typically last and what happens if the offer expires.

What is a mortgage offer?

A mortgage offer is only provided once your mortgage application has been completed and met the lender’s criteria. A mortgage is a legally binding contract which serves as confirmation that your application for a mortgage has been checked and approved.

A mortgage in principle vs a mortgage offer

Before you receive a mortgage offer, you may get a mortgage in principle (MIP), this may also be referred to as an Agreement in Principle (AIP) or Decision in Principle (DIP). A mortgage in principle gives you a provisional offer of how much the lender might give you , subject to them getting more information about your finances and their valuation of the property. While a mortgage offer is an official agreement from a lender to give you the money to buy the property.

What is a typical mortgage offer timeline?

It typically takes two to four weeks to receive a mortgage offer after you have put in your application. To apply and ensure your application process goes smoothly, you’ll need to supply bank statements, ID, payslips, P60s (and tax forms is self employed).

Also, with a mortgage offer timeline, you want to consider key factors such as the mortgage offer received, the underwriting process and the lender’s workload as an indication of processing times.

Can you extend a mortgage offer?

Yes, you can usually get your mortgage offer extended. To do this, you’ll need to contact your lender and request this in writing, ideally with at least a few weeks weeks’ notice. From there the lender will decide.

If you are granted an extension on your mortgage offer, this may be between a month to up to six months in some cases. It’s also worth bearing in mind that lenders are not obligated to grant an extension.

What could cause your mortgage to expire?

A mortgage offer could expire for several reasons, but mainly due to delays in the conveyancing process. This may be due to possible credit issues, a change in circumstances, property issues, mistakes on your mortgage application or inaccurate information.

Working with a mortgage broker may help minimise the chances of your mortgage offer expiring. They will put everything together for your mortgage application to help avoid these issues.

What happens if your mortgage offer expires before completion?

If you haven’t completed the sale by your mortgage offer’s expiration date, the offer may no longer be valid. Should this happen then you need to contact your lender and speak with them as soon as possible.

If your offer expires You may need to re-apply for a new mortgage which could risk the sale falling through. Also, if you only have two months left on your mortgage offer, you could tell your conveyancer/solicitor who can use this information to try and speed up the sale.