When do I sign my mortgage offer?

JayneG

Received my mortgage offer this morning - yay! - and am buying a new build scheduled for completion in 4 months. Do I have to sign the mortgage offer before we exchange contracts (this week hopefully), or can I sign it at any point before it expires?

We want to be flexible enough to apply for a better poducr if one comes along between now and completion, but I understand that if I sign the offer I am legally obliged to take that mortgage.

Will my solicitor require me to sign before exchange?

Thrugelmir

Your solicitor will not be a position to exchange contracts without the mortgage in place. As your lender will be committed to advancing the funds upon completion.

You can still arrange alternative finance with another lender before completion.

JayneG

OK thank you, that's a relief

JayneG

Well, further to the above, I signed the mortgage offer and returned it to the lender via my solicitor so that exchange of contracts could take place.

Fast forward a few weeks and I now have a much better mortgage offer from another lender. We are due to complete in October - at which point both mortgage offers will still be valid.

So, just to be clear, am I free to accept this new mortgage?

Thrugelmir

By offer I assume not just a MIP but on the property you are purchasing. If so yes.

JayneG

Hi there

Yes, it's a formal mortgage offer on the actual property we are purchasing, so now I have two formal offers, one of which I have signed and returned the paperwork for, but its the other which I actually wish to go ahead with when we complete in October.

I was just worried about the significance of having already formally accepted one, and whether this would then prevent me from changing to the other somehow.

Seems I am worrying about nothing, thanks!