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Understanding Mortgage Offers: What You Need to Know

Last updated: March 15, 2024

Rosie and Jess from Hudson Rose look at notebooks and compare tasks for the day

At Hudson Rose, we understand that navigating the world of mortgages can be overwhelming. That’s why we’re here to break it down for you in a way that’s easy to understand. In this article, we’ll be discussing mortgage offers and everything you need to know about them.

Row of Victorian terraced houses with blue sky

What is a Mortgage Offer?

 

Once you’ve gone through the application process and your mortgage application has been approved, you’ll receive a document called a mortgage offer. This document is essentially the lender’s confirmation that they are willing to lend you the money for your mortgage.

 

It’s important to note that a mortgage offer comes with certain conditions, so it’s crucial to read through it carefully and make sure you understand what it entails. If you have any questions or concerns, don’t hesitate to reach out to your broker or lender for clarification.

 

Offer Validity and Extension

 

Mortgage offers have a validity period, which means they are only valid for a certain amount of time. For most purchase transactions, this validity period is typically six months from the date of issue. However, it’s important to note that some lenders may have different terms, such as starting the clock from the valuation date or having a designated completion deadline attached to the product.

 

If you’re planning on an extended period between application and completion, it’s crucial to understand the specific terms and conditions that the lender has in place for the offer. This will help you avoid any surprises or complications down the line.

Hereford church and lake

Remortgage Offers

 

Remortgage offers can be slightly different from purchase offers. While many remortgage offers have a validity period of six months, some lenders may have a reduced timeframe for these transactions. It’s not uncommon to come across remortgage offers with three-month or 16-week validity periods.

 

If you’re considering a remortgage, it’s important to be aware of the specific validity period attached to the offer. This will help you plan your timeline accordingly and ensure that you complete the process within the given timeframe.

 

Offer Withdrawal

 

While it’s rare, it’s important to be aware that a mortgage offer can be withdrawn by the lender at any point, even after the exchange of contracts. This typically happens if the lender suspects fraud or if there is a material change in your circumstances that makes them uncomfortable in providing the mortgage.

 

While this may sound alarming, it’s important to remember that these situations are rare. As long as you’re honest and transparent with your lender throughout the process, you shouldn’t have anything to worry about.

 

Requesting an Offer Extension

 

Sometimes, despite your best efforts, things may take longer than anticipated during the mortgage process. If you find yourself in a situation where you won’t be able to complete before the offer expires, it’s important to contact your broker or lender as soon as possible.

 

You can request an offer extension, which means the lender agrees to extend the validity period of the offer to give you more time to finalise the deal. The process for requesting an extension varies from lender to lender. Some may simply reissue the offer for a given period, while others may require further underwriting and updated documentation.

 

It’s worth noting that not all lenders will grant offer extensions as a matter of course. Some may require you to resubmit your application for reassessment. If you find yourself in this situation, don’t hesitate to reach out to your broker for guidance and support.

 

Hudson Rose team in Cheltenham

 

Understanding mortgage offers is an essential part of the mortgage process. It’s important to read through the offer carefully, be aware of its validity period, and inform your lender of any material changes in your circumstances. If you need more time to complete the transaction, don’t hesitate to request an offer extension.

 

At Hudson Rose, we’re here to guide you through every step of the mortgage journey. If you have any questions or need assistance, please don’t hesitate to contact us. You can reach us at 0330 122 9920 or email us at hello@hudson-rose.co.uk. We look forward to helping you secure the best mortgage deal for your needs.

 

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Hudson Rose Services Ltd is an Appointed Representative of Stonebridge Mortgage Solutions Ltd, which is authorised and regulated by the Financial Conduct Authority.
Hudson Rose Services Ltd, trading as Hudson Rose. Registered Office: 7 Bridge Street, Nailsworth, Stroud, GL6 0AA
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