mortgage offer- valid for how long?

jonf

Hi,

I've just completed an online application for a Halifax fixed rate mortgage renewal, when I'm offered it how long will the offer be valid for? can I play for time and stay on the SRV for a few months with the offer fixed?

Cheers for any replies,

Jon

Jon1

You mean you have a mortgage in principle? it doesn't guarantee the rate will stay the same, it just means they will give you that particular mortgage, a mortgage in principle lasts 2 months from most places as i found out when i was going to get one

jonf

Thanks for the reply, just to clarify- do you mean that even after they've offered us the mortgage in principle at a certain rate, they can still change that rate anytime before we accept? I thought I read somewhere on here that you could fix a rate and had a certain amount of time to accept or decline, maybe I was dreaming,

cheers,

Jon

Hopejack

I think you are getting a bit confused between a 'mortgage in principle' and a 'mortgage offer'. The former can last around 2 months I believe but could be wrong, having said that, as you have not actually applied for the mortgage properly i.e. given detailed income/savings/investments/expenditure etc they can pull the 'deal' you've applied for at any time. Lenders tend to have a pot of money for each 'deal' and when the pot is gone, or they want to change the deal they can. The only way to 'secure' that deal is to apply for the actual mortgage properly - this often involves an arrangement fee to secure those funds. Only then, do you normally have 6 months to draw down the funds on a mortgage.

Hope that makes sense....

PS - Meant to say, a mortgage in principle doesn't really mean much, it gives an indication of what the lender will let you borrow but doesn't guarantee them lending you a penny, it's not until you apply for real that you would know that.