Mortgage Applications and Long Stop Completions

hanfrangipane

Hi,


I wonder if anyone with experience of long stop completion dates on non-new builds could explain how they work? I appreciate this will differ by lender but it's just a theoretical query at this stage.


We are in the process of negotiating an offer on a house and the vendors may want to move into a house that they have seen or if that falls through, wait until later in the year. There is a loose suggestion from the agent of us going through the conveyance process and getting to exchange with a long stop date to give peace of mind about the sale being binding but be independent of the vendors potential onward purchase until a date is more concrete.


I sold my house last year so we are in rented accommodation and a long completion date is appealing to us but if a mortgage has a 6 month expiry on it would an application normally have to be re-submitted if completion didn't happen in that timeframe?


Are there any other mortgage related pitfalls of this kind of arrangement? I've seen them mentioned with new builds but don't believe it is so common in regular sales and purchases.


Thanks in advance


Han

kingstreet

hanfrangipane wrote: »

if a mortgage has a 6 month expiry on it would an application normally have to be re-submitted if completion didn't happen in that timeframe?

It varies from lender to lender.

Some can be extended for a few months. Others are easier where a new product is selected, the valuation refreshed and a new offer issued.

hanfrangipane

Great, thanks.


So we could either put a deadline on the completion to make sure any initial mortgage offer still stood or leave it open if we were happy with the terms/options of our specific lender


For what it's worth, our preferred lender would be HSBC if anyone has experience with them