Mortgage offer renewal

Jaynorth_2

Hello

Does anybody know how long it takes to get a renewal for a mortgage offer from Halifax and what it entails? - Do they perform another credit check and does it go to the underwriters again...,

Thanks

Vetyver

Jaynorth wrote: »

Hello

Does anybody know how long it takes to get a renewal for a mortgage offer from Halifax and what it entails? - Do they perform another credit check and does it go to the underwriters again...,

Thanks

I just applied for one from HSBC. Yes, it goes back to the underwriters, and they ask you to send your last 3 months' bank statements as a minimum. It's taking forever to hear back on whether the extension application has been accepted, though :-S

kingstreet

What do you mean by an offer renewal?

How long since the offer was issued? What's the drawdown deadline on it?

Jaynorth_2

kingstreet wrote: »

What do you mean by an offer renewal?

How long since the offer was issued? What's the drawdown deadline on it?

I mean a mortgage offer on a property. My buyer has just informed me that his offer from Halifax on my property is about to expire - it has been 3 months since the offer was issued, and he seems to think that it is a simple process to have it renewed with no checks or underwriters.

kingstreet

Halifax offers don't expire after three months.

They have a drawdown deadline on page 9. An actual date.

It may be possible to have an extention if completion is delayed for some reason, but usually a new application has to be submitted if the offer really has reached its drawdown deadline.

As an example, we submitted an application on 16 June. It was offered on 27 June and the drawdown deadline is 28 February 2014.

Jaynorth_2

kingstreet wrote: »

Halifax offers don't expire after three months.

They have a drawdown deadline on page 9. An actual date.

It may be possible to have an extention if completion is delayed for some reason, but usually a new application has to be submitted if the offer really has reached its drawdown deadline.

As an example, we submitted an application on 16 June. It was offered on 27 June and the drawdown deadline is 28 February 2014.

Okay I am slightly confused, I thought that if a mortgage offer expires you have to renew it and that's the whole point of putting an expiry date on the offer? If Halifax are different from other lenders by also including a drawdown deadline and allow you to extend the offer deadline what does this extension involve? Is it a simple call from a broker and then waiting for the paper work?

kingstreet

No.

An extention is requested by the solicitor, usually by confirming a completion date is imminent, within the next two weeks.

It is done by solicitor correspondence with the lender's completions department to which broker and borrowers have no access.

This is a short-term solution to a problem of a slightly delayed completion.

If the offer expires and there's no prospect of completion, a new application would normally be required, with new product selection and new valuation, with fees payable again.

The only way I can see a Halifax offer expiring after such a short space of time is if the borrower was originally buying a different property, changed to yours and the three months is all that's left from the original offer period.

kingstreet

Is this about a formal offer, or a decision in principle?

These have only a three month life.

Jaynorth_2

Thanks, I think I understand now - It is for a formal offer and no it was not for a different property before mine.

My buyer did say that he could get an extention but his solicitor told him he would get it through his broker which is why I thought he was going for a complete renewal.

We are ready to exchange but because his offer expires within the week we thought there was no time to complete. I will let him know that he should seek the extention through his solicitor and not his broker.

kingstreet

I'd ask the broker to confirm with Halifax that an extention request would be accepted and if the solicitor simply requests it when submitting the Certificate of Title.

Jaynorth_2

kingstreet wrote: »

I'd ask the broker to confirm with Halifax that an extention request would be accepted and if the solicitor simply requests it when submitting the Certificate of Title.

I will but wouldn't it be easier if his solicitor who is also acting on behalf of the lender contact Halifax and clarify this or is there any sort of conflict in a solicitor enquiring about his clients mortgage from the lender?