When you receive a mortgage offer from a lender, you’ll usually find an expiry date on the document. This means you’ll have to complete the purchase of your property before the date in question. Unfortunately, this isn’t always possible, particularly if you’re buying a new build property that is under construction.
In some cases, home buyers can be left waiting longer than expected for their property to be built and when this happens, sometimes the mortgage offer expiration date can be exceeded.
Whether the windows haven’t yet been fitted or you’re still waiting for your new home to be plastered, read on to find out what you can do if the mortgage deadline is looming.
Requesting a mortgage extension
Many lenders will be happy to extend the lifespan of your mortgage offer to ensure you can buy the property. Banks and building societies understand that buying a home isn’t always smooth sailing, particularly if you’re buying a new build. So if your completion date has been postponed, speak to your lender as soon as possible. Most lenders require a few weeks’ notice in order to extend the mortgage’s deadline and they’ll usually lengthen the mortgage offer for a month or more.
If your financial circumstances haven’t changed since your initial application, you’re unlikely to encounter many issues. However, if your income has fallen, you’ve taken on new consumer debts, or you’ve become self-employed, your mortgage lender may refuse to lend you the money you need. You may be offered less and in some cases, your loan application could be rejected completely.
Reapplying for a mortgage
If your lender refuses to extend the expiry date on your mortgage, it may be possible to re-apply for the same deal or look for a new mortgage product entirely.
Rather than sticking to your current lender, compare deals from the entire market. Your initial mortgage product might no longer be available, but there could be even better offers on the market than before. In some cases, your expired mortgage offer could work in your favour and you may access a more affordable and cost-effective loan with a more favourable interest rate.
Although you may be able to save money by choosing a different deal, you will have to go through the application process again and the property you’re purchasing may need a new valuation. You may also face more application fees.
If your mortgage offer is due to expire and you’d like help finding a new deal, pleaseget in touch with the team at TaylorMade. We can help you find the most suitable deal before guiding you through the application process until you finally get the keys for your home.
