How long is a mortgage offer valid?

Mouschka

I know I am asking something nobody can give a precise answer to but let me outline a few (hopefully helpful) details

• OH and I have currently owe 50k on a house valued at 475k
• We want to have a large extension built and have submitted plans
• We are getting builder's quotes and they are saying work wouldn't start until next year
• We have seen a great mortgage & have excellent credit ratings

Do we have to wait until nearer the time building work can commence then apply for the remortgage or could we do it now and have the offer on hold?
If anyone can help before I get ahead of myself that would be great - thanks!

kingstreet

A remortgage offer typically lasts three months.

Bravestar

Mouschka wrote: »

I know I am asking something nobody can give a precise answer to but let me outline a few (hopefully helpful) details

• OH and I have currently owe 50k on a house valued at 475k
• We want to have a large extension built and have submitted plans
• We are getting builder's quotes and they are saying work wouldn't start until next year
• We have seen a great mortgage & have excellent credit ratings

Do we have to wait until nearer the time building work can commence then apply for the remortgage or could we do it now and have the offer on hold?
If anyone can help before I get ahead of myself that would be great - thanks!

As you have £425k equity in the property (and assuming you have the status needed to remortgage), then you can apply today based on the property as is. (assuming that's enough equity to fund the extention based on LTV limitations)

When the remortgage occurs, the new mortgage provider will pay off the £50k currently outstanding, and then will pass the remaining funds to you. You can then keep them in a safe place until such times as you need to pay the builder.

You need to decide if this is such an amazing, never to be repeated mortgage offer that the costs of paying repaying it for the next year outweigh the alternative of waiting a year and applying for whatever is on offer then.

Mouschka

Bravestar wrote: »

You need to decide if this is such an amazing, never to be repeated mortgage offer that the costs of paying repaying it for the next year outweigh the alternative of waiting a year and applying for whatever is on offer then.

Yes you are right...
I really don't know the answer to that one so I'm going to keep looking around and maybe ask a few more questions. I will probably get on with other aspects of organising the project and come back to this one. Thanks