Mortgage offer expires soon - Can I apply for another mortgage with another lender?

Homebuyer2919

Hi,

We are currently in the process of buying a house however due to a new build being delayed further up the chain, our expected completion date keeps being pushed back.
Our current mortgage offer expires 28th March 22 but we are being told that we may complete in March/April so we don't know if this will be in time for our current offer. Note, we haven't get exchanged but are under pressure to do so asap.

Since we received our mortgage offer the rate has risen from 0.99% to 1.30% so we are keen to try to complete in time for the current offer to be valid. 

Should we and can we apply for another mortgage offer with another lender to have as a back up if we require? Will this cause any problems or damage or credit rating?

Thanks

K_S

@homebuyer2919 Who's the lender? If it's a new-build offer, most lenders will have a process in place to extend it. For example Nationwide is 6m+45 days, Leeds is 6+3+3, Halifax is 6+6, etc.

If you've already reached the final extension and there's no option to extend it further then you will likely need to make a full application anyway at some point in the future around late-Feb or early-March.

Another option is to get a soft-check DIP with a lender that allows you to 'reserve' a product at DIP stage, so you are somewhat protected. Though it will come with a deadline before which a mortgage offer needs to be issued.

Homebuyer2919

K_S said:

@homebuyer2919 Who's the lender? If it's a new-build offer, most lenders will have a process in place to extend it. For example Nationwide is 6m+45 days, Leeds is 6+3+3, Halifax is 6+6, etc.

If you've already reached the final extension and there's no option to extend it further then you will likely need to make a full application anyway at some point in the future around late-Feb or early-March.

Another option is to get a soft-check DIP with a lender that allows you to 'reserve' a product at DIP stage, so you are somewhat protected. Though it will come with a deadline before which a mortgage offer needs to be issued.

Hi, thanks for your reply. We are buying a part exchange house (the people who live there currently are buying the new build which has caused the delay). I have spoken with the lender and they have advised they would only grant a 2 week extension - I think we will need more than this. So I'm wondering if we applied for another mortgage which a different lender, would this cause any challenges? Hurt credit rating etc?

Windofchange

A new mortgage application will trigger a new hard credit check, and therefore will in theory 'hurt' your credit score. However, as long as you haven't been applying for mortgages left right and centre, I can't imagine that another credit search some 6 months after your initial one for your current offer is going to have any bearing on your ability to secure a mortgage. Are you a straight forward case? No bad credit history, defaults etc? If so, I would have thought it would be very easy to just go get another mortgage as long as affordability ok. 

K_S

Homebuyer2919 said:

K_S said:

@homebuyer2919 Who's the lender? If it's a new-build offer, most lenders will have a process in place to extend it. For example Nationwide is 6m+45 days, Leeds is 6+3+3, Halifax is 6+6, etc.

If you've already reached the final extension and there's no option to extend it further then you will likely need to make a full application anyway at some point in the future around late-Feb or early-March.

Another option is to get a soft-check DIP with a lender that allows you to 'reserve' a product at DIP stage, so you are somewhat protected. Though it will come with a deadline before which a mortgage offer needs to be issued.

Hi, thanks for your reply. We are buying a part exchange house (the people who live there currently are buying the new build which has caused the delay). I have spoken with the lender and they have advised they would only grant a 2 week extension - I think we will need more than this. So I'm wondering if we applied for another mortgage which a different lender, would this cause any challenges? Hurt credit rating etc?

@homebuyer2919 Your previous hard-check from when you first applied is fairly immaterial. There'd be a minor impact from the hard-check for a full app, but if that app goes through fine then it doesn't really matter. 

Homebuyer2919

Windofchange said:

A new mortgage application will trigger a new hard credit check, and therefore will in theory 'hurt' your credit score. However, as long as you haven't been applying for mortgages left right and centre, I can't imagine that another credit search some 6 months after your initial one for your current offer is going to have any bearing on your ability to secure a mortgage. Are you a straight forward case? No bad credit history, defaults etc? If so, I would have thought it would be very easy to just go get another mortgage as long as affordability ok. 

Thanks for your reply, yes all should be straight forward otherwise - we don't have bad credit history etc. thanks