Mortgage offer expiry halifax new build

Mortgage_99

Hi, our developers have called and stated that the new build property we are in the process of buying is to be delayed by a couple of weeks due to material and labour shortages. The mortgage offer we have is a 3 month expiring on 30/06/22. But the developers have stated completion will take place mid July. We have not yet exchanged as we are about to waiting of the developers solicitors. 

My question is are we likely to get an extension from Halifax without having to go through a new credit search and will we have to get a new rate? Or can we just get a month extension without much trouble.

kingstreet

You have a product drawdown deadline, not an expiry date.

You will need to choose a new product and this will usually trigger a soft search.

Mortgage_99

kingstreet said:

You have a product drawdown deadline, not an expiry date.

You will need to choose a new product and this will usually trigger a soft search.

Okay thanks, so does that mean we will have to get a whole new rate? Which potentially will be higher?

Initially we were given a rate of around 1.60% when accepted around March 10th. Now we are worried the rate will be much higher due to external economic factors.

CarterUK73

I’d have thought giving Halifax a call explaining the delay wouldn’t hurt? Worst case is you will need to choose a new product, best case is they give you an extension on the original product?

Mortgage_99

Hi, so our mortgage broker, after asking him said Halifax will normally automatically extend. And if not he said he would apply for an extension 1-2 weeks before expiry. He said it will be fine and they’d accept and that it’s very unlikely they’d reject as completion is only delayed by 2 weeks. He also said the rate would stay the same with the extension, and didn’t mention anything about a product drawdown deadline at all.

Is this true then?

kingstreet

The outcome is posted here;-

https://forums.moneysavingexpert.com/discussion/6354617/halifax-mortgage-offer-expiry-extension#latest