Current Mortgage offer timelines

Kemango

Hi all,

Just wondering if anyone else is experiencing delays in lenders making mortgage offers?

Our buyers applied for a mortgage five weeks ago today and said they had had it approved three weeks ago. However they still do not have a formal mortgage offer - just curious as to whether others are experiencing similar or if they might be fibbing about what’s really going on… 

K_S

Kemango said:

Hi all,

Just wondering if anyone else is experiencing delays in lenders making mortgage offers?

Our buyers applied for a mortgage five weeks ago today and said they had had it approved three weeks ago. However they still do not have a formal mortgage offer - just curious as to whether others are experiencing similar or if they might be fibbing about what’s really going on… 

@kemango Not sure what you mean by "had it approved" but most mainstream lenders are quite slow at present in processing mortgage applications. This has been the case for a good few months now.

It varies quite a bit across lenders but generally speaking it's not unusual for straightforward applications to take 4-8 weeks from application to offer simply due to it sitting in a queue at different stages waiting for someone to pick it up.

Kemango

Thanks @K_S.

I’m also not sure what I mean by ‘had it approved’ - that’s the wording the estate agents used when they updated us a few weeks ago, and the buyers reiterated this last week saying that they are just waiting for the letter to come through to confirm this.

However, their solicitors have since told ours that they cannot move forward because they’re waiting for the offer of mortgage, and the buyers have also said they’re in a queue for the underwriters. 

It’s reassuring to hear that it’s not outside of a typical timescale - we’re just confused about what’s going on and our own mortgage offer is set to expire on 30th September so we’re keen to progress.

K_S

Kemango said:

Thanks @K_S.

I’m also not sure what I mean by ‘had it approved’ - that’s the wording the estate agents used when they updated us a few weeks ago, and the buyers reiterated this last week saying that they are just waiting for the letter to come through to confirm this.

However, their solicitors have since told ours that they cannot move forward because they’re waiting for the offer of mortgage, and the buyers have also said they’re in a queue for the underwriters. 

It’s reassuring to hear that it’s not outside of a typical timescale - we’re just confused about what’s going on and our own mortgage offer is set to expire on 30th September so we’re keen to progress.

@kemango If they're still in a queue for underwriting, I'm guessing they meant that the valuation has been approved. With most mainstream lenders, the valuation process happens in parallel to the underwriting.

Hopefully you're with a lender that will consider an extension if needed. If you/solicitor haven't explored the process yet, it may be worth doing so.

Kemango

That makes sense - hopefully it won’t take too much longer.

We applied for an extension on Friday so just waiting to see whether it is granted! 

Thanks for your advice.

GAMBITv5

Ours has been rather rapid despite a more complex case (porting and maternity) with Nationwide.

15/9 - New Build Reserved
20/9 - Product Reserved 
21/9 - Full Application
22/9 - Hard Search
26/9 - Valuation
26/9 - Product Change from 2yr FR to 5yr FR
26/9 - Offer

MrCarrot

@Kemango exactly the same issue here, our buyers applied about 5 weeks ago, about 3 weeks ago we were told everything was fine but there was a 2 week underwriting delay, we're now being told they should get an answer this week.  I'm also starting to become skeptical but the estate agent and a couple of different mortgage brokers I've spoken to assure me that delays at the moment are normal.

bernadettemartina85

K_S said:

Kemango said:

Thanks @K_S.

I’m also not sure what I mean by ‘had it approved’ - that’s the wording the estate agents used when they updated us a few weeks ago, and the buyers reiterated this last week saying that they are just waiting for the letter to come through to confirm this.

However, their solicitors have since told ours that they cannot move forward because they’re waiting for the offer of mortgage, and the buyers have also said they’re in a queue for the underwriters. 

It’s reassuring to hear that it’s not outside of a typical timescale - we’re just confused about what’s going on and our own mortgage offer is set to expire on 30th September so we’re keen to progress.

@kemango If they're still in a queue for underwriting, I'm guessing they meant that the valuation has been approved. With most mainstream lenders, the valuation process happens in parallel to the underwriting.

Hopefully you're with a lender that will consider an extension if needed. If you/solicitor haven't explored the process yet, it may be worth doing so.

We’re on the other side, applied for our mortgage 12 weeks ago and have been in a queue with HSBC ever since. Have passed affordability and been through underwriting but there was an issue with the property valuation. We had to get a few structural reports and each time an updated report is added the application goes to the back of the queue and it takes approx 2/3 weeks to get a response each time. We have hopefully just provided the third and final report they require!! KEEP POSITIVE! And just know the current situation is causing huge delays!