Halifax mortgage offer expiry/extension

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.

K_S

@mortgage_99 With Halifax, the product usually has a 'complete-by' date which in this case appears to be 30/06.

Beyond that normally there's no option but to pick a current product. The process itself is quite straightforward and may involve a soft-footprint credit check.

Once you confirm that the above is indeed the case, if you think that rates may rise further in the time to June, you could consider switching products early and locking in the currently available product/rate.

Mortgage_99

K_S said:

@mortgage_99 With Halifax, the product usually has a 'complete-by' date which in this case appears to be 30/06.

Beyond that normally there's no option but to pick a current product. The process itself is quite straightforward and may involve a soft-footprint credit check.

Once you confirm that the above is indeed the case, if you think that rates may rise further in the time to June, you could consider switching products early and locking in the currently available product/rate.

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.

K_S

@mortgage_99 That's right, the rate could potentially be higher. You can get a flavour of current rates here https://www.halifax-intermediaries.co.uk/products/mortgages/default.aspx or here https://www.halifax-intermediaries.co.uk/pdf/mortgage_guide.pdf

But first please do speak to your broker or Halifax (if direct) to confirm that what I've said is indeed the case for you.

Mortgage_99

K_S said:

@mortgage_99 That's right, the rate could potentially be higher. You can get a flavour of current rates here https://www.halifax-intermediaries.co.uk/products/mortgages/default.aspx or here https://www.halifax-intermediaries.co.uk/pdf/mortgage_guide.pdf

But first please do speak to your broker or Halifax (if direct) to confirm that what I've said is indeed the case for you.

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? The developers sales team when asked also stated that it’s fairly simple to get an extension with the same rate?

K_S

Mortgage_99 said:

K_S said:

@mortgage_99 That's right, the rate could potentially be higher. You can get a flavour of current rates here https://www.halifax-intermediaries.co.uk/products/mortgages/default.aspx or here https://www.halifax-intermediaries.co.uk/pdf/mortgage_guide.pdf

But first please do speak to your broker or Halifax (if direct) to confirm that what I've said is indeed the case for you.

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? The developers sales team when asked also stated that it’s fairly simple to get an extension with the same rate?

@mortgage_99 Perhaps I'm missing something obvious. If your broker has confirmed that you will be able to get an extension (beyond the product drawdown deadline) and keep the same rate, then that probably is the case. Good luck, hope it all goes smoothly here on!

metalloz

That's interesting - I've been told by my broker I would be able to extend my halifax mortgage but it would be at the current rates now, a big increase.

K_S

metalloz said:

That's interesting - I've been told by my broker I would be able to extend my halifax mortgage but it would be at the current rates now, a big increase.

@metalloz That's what I would expect with Halifax offers.

However, the first post mentions "The mortgage offer we have is a 3 month expiring on 30/06/22" which is unusually short for a Halifax new-build mortgage. So there might be something I've missed there as I can't think of a scenario in which a Halifax new-build offer would be valid for less than 9 months, let alone 3.

For example, if you were to apply for a Halifax new-build product today, it would be valid to 31.03.2023. And once the products are updated this week, if you applied after that, it would go up to 30.06.2023..

Mortgage_99

K_S said:

metalloz said:

That's interesting - I've been told by my broker I would be able to extend my halifax mortgage but it would be at the current rates now, a big increase.

@metalloz That's what I would expect with Halifax offers.

However, the first post mentions "The mortgage offer we have is a 3 month expiring on 30/06/22" which is unusually short for a Halifax new-build mortgage. So there might be something I've missed there as I can't think of a scenario in which a Halifax new-build offer would be valid for less than 9 months, let alone 3.

For example, if you were to apply for a Halifax new-build product today, it would be valid to 31.03.2023. And once the products are updated this week, if you applied after that, it would go up to 30.06.2023..

Well initially we applied for the mortgage on 09/02/22 and got the offer on 09/03/22. This offer expires on 30/06/22 which is just over 3 months which I was suprised about as it’s a new build. It would be frustrating if we had to get a new rate as initially we were due to complete in Mid-end of June which would have fit within the expiry date. But now the developers saying there will be roughly a 2 week delay going into July. So this 2 week delay could potentially cost us £100-£200 more per month than we initially had which is £2400-£4800 during the 2 year fixed period. Shocking.

Mortgage_99

So I called Halifax and they said they do have a complete by date and if it’s not complete by then a new product has to be selected. Wow I can’t believe it so a 2 week delay from developers is gonna cost us £4800 potentially over 2 years. Crazy.

simon_or

Mortgage_99 said:

So I called Halifax and they said they do have a complete by date and if it’s not complete by then a new product has to be selected. Wow I can’t believe it so a 2 week delay from developers is gonna cost us £4800 potentially over 2 years. Crazy.

That is nuts. My Halifax offer when buying a new build was a year long, no extension needed.

Are you sure the broker hasn't messed up somewhere, it does not make sense.