Mortgage expiry date

Amme

Hello

We are in the process of buying a new home which isn't yet built.
We are due to exchange contracts this Thursday but our mortgage offer expires before the house is due to be complete, now we have been told that we can re apply for a new mortgage at no extra cost to us, this all seems to be a little strange to me & wanted to know if anyone else has been in the same situation & had any trouble when re applying for the mortgage.

Mortgage is with Nationwide & they will only extend the offer for a couple of weeks which isn't long enough.

Thanks

Thrugelmir

Speak to your solicitor regarding the implications if you are unable to complete on the property. As you'll need to weigh the risks involved if for any reason you are unable to obtain a mortgage at a later date.

Yorkie1

TBH, I'd prefer to delay exchange until I knew that the mortgage was safe under the new MMR lending / affordability rules.

The worst case scenario is that you were borderline but successful with the previous mortgage offer, then exchange contracts, then re-apply for the replacement mortgage, are unsuccessful, and are then forced to complete without a mortgage offer being in place.

Another possibility which might be worth discussing with your solicitor is inserting a clause into the contract that if you can't get an acceptable mortgage between exchange and completion, you can pull out without penalty.