Extend mortgage offer?

poppy1010

We have already exchanged on our house, however our mortgage offer (with Halifax) will expire before the house (new build) is completed.

We have been told, during exchange completion is likely to be end of July. But our mortgage offer expiry is end of June.

When is the best time to request an extension? we were thinking April.

Also, the valuation was done in November, how does asking for an extension work? do they re-assess you again (like another application?) or is it a case of approving an extension over the phone.

Thank you

kingstreet

It doesn't work how you think. It's simply a case of choosing a new product with a later drawdown deadline and replacing the one you chose at the outset.

You ask your advisor to illustrate a product which has a drawdown deadline beyond your build end-date. Some current products are 30/09/2016 so you could secure a new product now, rather than wait.

The rate can then be selected on the online system and a new offer issued immediately on the new deal.

The valuation will have to be refreshed by Halifax and Colleys when it gets six months old, but that's a standard in-house thing.

If rates go up in the time between now and when you do this, you could end up with a worse rate.

binky21

Depending on the lender (Satander, for example), you will most likely be credit checked again before they issue you with a new offer.

poppy1010

Thanks for your reply.

OK so my understanding now is that we do not need to go through another long application then. Our broker is very busy and i've often phoned Halifax direct (during application for updates) which Halifax were fine with. On this basis, can we just call Halifax to get the new product extended or new one or do we have to do it via the broker?

poppy1010

The lender is Halifax.

Goldiegirl

poppy1010 wrote: »

Thanks for your reply.

OK so my understanding now is that we do not need to go through another long application then. Our broker is very busy and i've often phoned Halifax direct (during application for updates) which Halifax were fine with. On this basis, can we just call Halifax to get the new product extended or new one or do we have to do it via the broker?

If you need a new product you'll need to go through your broker, due to regulations surrounding advice and recommendation - the Halifax won't get involved with this as it's your brokers role.