Mortgage offer expires = chain falls apart

Laurelii

If I haven't moved in before my mortgage expires does this mean the chain will fall apart and there will be no sale? 

(I asked my mortgage advisor if a extension would be possible and they said another one would have to be issued)

K_S

@laurelii With non new-build mortgage offers, an extension is unlikely. Where possible by exception, it will likely only be for a few days.

To state the obvious, if you don't have a valid mortgage offer then you won't be able to complete on the mortgage.

Assuming your circumstances haven't changed, your advisor should be able to get you a fresh offer without too much effort.

MovingForwards

If you haven't completed the purchase you'll need a mortgage extension or if an extension isn't possible apply for a new mortgage a few weeks before it expires.

If you can't get either, your part of the chain will collapse and hopefully a new buyer could be found to keep everyone else in a chain.

Laurelii

MovingForwards said:

If you haven't completed the purchase you'll need a mortgage extension or if an extension isn't possible apply for a new mortgage a few weeks before it expires.

If you can't get either, your part of the chain will collapse and hopefully a new buyer could be found to keep everyone else in a chain.

Were at the bottom of the chain FTB and in rented accomdation atm. Mortgage offer expires 26th Feb, our offer on the house was accepted 09/09/21 and mortage offer given 26/10/2021

Laurelii

MovingForwards said:

If you haven't completed the purchase you'll need a mortgage extension or if an extension isn't possible apply for a new mortgage a few weeks before it expires.

If you can't get either, your part of the chain will collapse and hopefully a new buyer could be found to keep everyone else in a chain.

The mortgage offer expires 26th feb 2022. Were FTB and at the bottom of the chain offer accepted on the house 09/;09/2021 and mortage offer given 26/10/2021

Laurelii

Would we have to pay for another valuation and survery etc again 

MovingForwards

It depends on the lender as valuations have a shelf life, possibly just a rekey which is a lot cheaper; basically the surveyor has a quick look at sold prices and their original report to see if they stand by it (using easy terms as per my understanding).

You wouldn't need another survey unless you were worried about something.

Probably need to pay another mortgage arrangement fee, or add it to your mortgage; hopefully you added it to this one as if it doesn't complete in time there's no charge (again, it's my understanding of it).

How many people are in the chain?

Laurelii

MovingForwards said:

It depends on the lender as valuations have a shelf life, possibly just a rekey which is a lot cheaper; basically the surveyor has a quick look at sold prices and their original report to see if they stand by it (using easy terms as per my understanding).

You wouldn't need another survey unless you were worried about something.

Probably need to pay another mortgage arrangement fee, or add it to your mortgage; hopefully you added it to this one as if it doesn't complete in time there's no charge (again, it's my understanding of it).

How many people are in the chain?

Valuation came back 22nd September 2021 - and was fine - we spent around £250 i think on this
Solicitor survey came back mid November 2021 - and again was fine

how much would a mortgage arrangement fee be? ( forgive me im ftb so no clue on what things are even after 4 months)
is it a product fee ?? we agreed to go with £460 monthly repayments and no product fee  (i think lol)

so far there me at the bottom of the chain - Then my seller - Then my sellers seller ( who apparently is moving into rented accommodation but this has been the case for months now, no idea whether they have found anything yet)

MovingForwards

Solicitors do not do surveys, you would have instructed an independent surveyor.

Arrangement fee is the product fee. 

Better to manage your expectations, not many sellers do go into rental, lots of them say they will.

I don't like to contradict a broker (K_S), but I purchased a non-new build and did get a mortgage extension, it was for more than a few days too. Had I not completed after that one expired I would have had to go through the whole process again. Therefore it varies between lenders. In K_S' defence, mine was at the start of the pandemic.

kirtondm

I would exert pressure and tell the estate agent when your mortgage expires they should then be able to pressure further up the chain. I am also concerned the top of the chain are not motivated to move. , they probably won't move into rented. 

If you end up having to look for another mortgage a could good time to decide if this is still the house for you

Laurelii

kirtondm said:

I would exert pressure and tell the estate agent when your mortgage expires they should then be able to pressure further up the chain. I am also concerned the top of the chain are not motivated to move. , they probably won't move into rented. 

If you end up having to look for another mortgage a could good time to decide if this is still the house for you

we absolutley love the house were wanting to move into. it ticks all the boxes and more of our criteria, which is v rare in the little town were in