Extending mortgage offer?

englandcrew

Hi,
We have received our mortgage offer and it is valid for 70days. We have since found out that the last person in the chain who is buying a new build will not be ready due to the builder. Based on this we require our mortgage offer to be extended, I have been informed we can apply for an extension however we need to supply new bank statements and pay slips.

Even though our circumstances haven't changed I'm worried it won't be extended. Would it just be a case I checking our situation hasn't changed? How long does it generally take to get offer extended?

Also the builder will no doubt look to push the chain to exchange contract as soon as possible. It is ultimately the builders we are waiting for but when it gets nearer the time they will be waiting for me, are they likely to pull out if I can't exchange when they want.

Thanks

andy.m_2

our completion went to the the wire re: mortgage offer expiry.

The letter we received from our lender stated that should we require to over-run then our solicitor should get in touch with them.

If you know that this will be the case then get your legals to open discussion now, at least that way you will have the answer and, if necessary; time to put in place a plan B.

Jimbo1976

Assuming your pay slips and bank statement don't show anything scary then there shouldn't be any underwriting issues with extending the offer.

With regards to the product, sometimes things are harder. Lenders are a bit tougher with fixed rates than with trackers due to funding issues.

As to the time taken to extend the offer, it will vary from lender to lender. The sooner you start the process the sooner it will finish

dannyblay

enlandcrew which lender did you use? And has your mortgage offer been extended. I am in the same situation trying to get my broker to extend my mortgage offer.

kingstreet

You need to differentiate between the offer expiring and the drawdown deadline for the product.

An offer normally expires six months from its issue date. To renew an offer a lender may require up to date status information and a new valuation.

If the offer is still "in date" but you are approaching the drawdown deadline your solicitor can request an extention and upto a month is normally easily obtained.

dannyblay

My offer is expiring at the end of August,but it is my broker who is dealing with the extension not my solicitor? Is that also allowed?

kingstreet

It's normally requested by the solicitor, not the broker. It's handled by the lender's completions team which deals solely with solicitors.

dannyblay

so Kingstreet what do you think the broker is doing then? He said he is going to look for a similar product that I was offered and move me onto it,but he also made it clear to me that it is not a new application and he has done lots of these before.
In my offer letter it says if I have not taken out the mortgage I need to contact the bank to make new arrangements. My property is a new built so I don't know the lender is may aware of the fact there can be delays.

kingstreet

No idea. I'd have used a product with a longer drawdown deadline designed for newbuild cases so the offer didn't expire too early.

As I said, if you want your current offer extended, it's normally the solicitor's responsibility to arrange this.

Going back to my first post in this thread, is the offer expiring or are you approaching the drawdown deadline?

harvey115

You do not need to worry in this case.

I am also buying a new build and my mortgage offer expires in mid September. However I managed to request my house to be completed end of August to avoid any delays and mishaps.

Your broker will be in contact with the underwriters throughout the process, in case they request anything during the renewal of the offer. The solicitors initiate the requests however when it comes to speeding up the process, brokers jump in and get your case to the underwriter/correct staff as quickly as possibly.

Just make sure that everyone (developer, their solicitor, your solicitor, lender, broker and lender's solicitor if different) is aware of the:
- Completion dates of the house
- Mortgage offer expiry dates

The reason why I am saying this is because the developer (a good one) would try to do whatever they can to make sure the deal does not fall through. So they would consider extending their deadlines on exchange, completion etc. On the same time they may consider moving completion dates if there are considerable amount of risk for the deal to fall through otherwise.

Hope this helps.

I am buying from Cala Homes Ltd and the advisers are very nice/honest with me.

dannyblay

Thanks Harvey115 that is really helpful

Kingstreet I am approaching the drawdown deadline. I was given product with a six months validity period. The builder was argueing the fact that there was a bad whether towards the end of june and part of july that was where the delay is.