Buying a home can be a long game. This can however be a risk when the housing market is constantly changing and the price of a home can increase in a matter of just a year. “How long does a mortgage offer last” is a question that isn’t usually thought about until you’re in the process of buying a home.
It’s always better to be in the know, which is why we’ve decided to write a blog based on the question we often hear, “How long does a mortgage offer last?”.
If you’re looking for mortgage advice, talk to Weystone today.
What is a mortgage offer?
When you would like to move home and you cannot buy the home in full, you need a way to pay for the home. This is where you will ask to borrow money from a mortgage lender. In this process, the mortgage lender will ask you questions and review your financial situation after which they will give you an offer for the home you wish to move into.
How long does a mortgage offer last?
This question all depends on the lender’s criteria but the mortgage offer typically lasts 3-6 months. If you ask your lender, they will give you a start day and an expiration date, alternatively you can find the date on the offer document.
What is a Mortgage in Principle?
A Mortgage in Principle is what it says on the tin, a mortgage that in belief should go forward. However, a mortgage in principle is not the same as a mortgage offer. A Mortgage in Principle is how much a lender could be willing to give you once you’ve completed the application and you are approved by the provider’s underwriters. A Mortgage in Principle is what you should have in place before you start looking for properties within your price range. A Mortgage in Principle will show estate agents that you’re a serious buyer. Furthermore, it will also let sellers know that you’re likely to be able to afford their property.
Please note: A mortgage in principle will not guarantee that you will be offered a mortgage. Your mortgage will only be set in stone once you’ve submitted your full application, at which point you will be declined or accepted. You may be declined for a number of reasons, for example, if certain information was revealed about your credit history.
How to apply for a Mortgage in Principle
You will need to provide the lender with basic personal information, like your income and how much you’re willing to borrow. The lender will have certain criteria that you will need to meet, if you meet these criteria, they will provide you with a Mortgage in Principle.
How long does a mortgage offer in principle last?
Depending on your lender, a Mortgage in Principle will typically last between 2 and 4 months. Due to the fact that Mortgages in Principle do not last long, it’s important that you only request a mortgage in principle when you are fully intending to buy a home in a quick manner.
When is the appropriate time to apply for a mortgage?
Once you have your Mortgage in Principle, have found a home you like and your offer has been accepted on the property, you can then apply for the mortgage.
What if I have gone past the expiry date of the offer set out in my Mortgage in Principle?
Sometimes it can take a while to find a house perfect for you or the buying process can take longer than you expected. In this case, you can ask your mortgage provider for an extension. You should always let your provider know about the extension as soon as possible.
How to reapply for a Mortgage in Principle
There could be many reasons why you cannot purchase property before your Mortgage in Principle expires. It could stem from an array of delays such as delays in construction when a new build property is not ready to move into, or it may be personal delays on your behalf.
In this case, all you can do is reapply and you will have to proceed to go through all of the checks that you went through previously. As long as your circumstances haven’t changed in a negative way, you are likely to be accepted again.
Thank you for reading our blog ‘How long does a mortgage offer last?’. If you’re in need of some mortgage advice, get in touch with Weystone today.