Is Completion in September a Problem for the Bank?

pip_on_the_move

Righty-ho, we've got an offer for our flat, and we actually know the people who are buying it so we're really pleased (and not as nervous as we would be if a stranger was buying the place because we had two sales fall through last time we moved ).

Anyway, they want to exchange in April but complete in September (due to ill health), and we're fine with that... we'll probably move out and rent until completion (need to leave here, also due to ill health).

But how long do you have to complete after you get your mortgage offer? If we started our application in April, for example, assuming we had a house to buy, would the mortgage company expect us to complete within one/three/six months?

freebo_2

Mortgage offers are usually vaild for 6 months AFAIK...

Mrs_Arkwright

My mortgage offer is valid for a year - I guess it depends on which company you're using.

pip_on_the_move

When during the process do you get a mortgage offer... is it after all the conveyancing's done and the survey and all that... just before exchange?

I know we bought this place, but we were all over the place at the time, and I don't remember how long it took or anything.

Mrs_Arkwright

pip_on_the_move wrote:

When during the process do you get a mortgage offer... is it after all the conveyancing's done and the survey and all that... just before exchange?

I know we bought this place, but we were all over the place at the time, and I don't remember how long it took or anything.

Not sure if there's a hard and fast rule on that - we got our offer in November and haven't even exchanged yet - but that's another long and boring story!

pip_on_the_move

Mrs_Arkwright wrote:

we got our offer in November and haven't even exchanged yet - but that's another long and boring story!

That's quite a while isn't it.

Do you think it's worth making an offer on any property at this point when we can't complete until September? We made an offer on a cottage and the agent nearly fell off his pirch at the mere thought of such an outragious idea. :rolleyes2

Rick62

But how long do you have to complete after you get your mortgage offer? If we started our application in April, for example, assuming we had a house to buy, would the mortgage company expect us to complete within one/three/six months?

There are actually two different things to consider, a lender will approve you for borrowing (doing credit check, confirming earnings etc) and this will typically be 3 to 6 months and relatively easy to renew (if your circumstances are the same). There is then the particular product that you have reserved. These can normally be reserved for 3 to 4 months, but then extended. Northern Rock for example, their offers are good for 16 weeks, but then you can extend by 4 weeks then another 4 weeks and then so long as you have a firm completion date you can extend again.

All the lenders have slightly different policies and they are not good at publishing them, so once you have a shortlist of lenders just ring them up and ask them.

pip_on_the_move

We had some problems a year ago so we don't have a spotless credit record (which is a pain because our record for about seven years previously was perfect), so when we went to speak to a broker she suggested Southern Pacific Mortgage Limited. I've looked for details on the internet, but can't find a web site to get contact information, and the broker said she would discuss how long the offer would last for once we'd found a property... but we don't know when to look for one until we know how long the mortgage offer would last, if you see what I mean.

Feel like we're running after our own tails at the moment.