Mortgage Offer Extension (Leeds Building Society)

Steve1984123

Hi All,

Long-time reader of MSE, but first-time post so hopefully this is in the correct place!

We are in the process of purchasing a new-build property, the original estimated completion was August - October. This was pushed until October - December. Our mortgage offer is from Leeds Building Society and expires in the middle of November so we are a bit concerned, particularly due to the rapidly rising interest rates.

We cannot apply for an extension until a month before (October), we have been reassured by our mortgage broker that a 6-month extension is standard and it should remain at the rate we were originally offered.

Leeds do appear to be relatively generous in this regard, but I am a bit sceptical they would stick to that original interest rate given recent events. Can anybody offer reassurance here (or alarm?!). Would you look to lock-in a 'backup mortgage' just in case the build is delayed further and rates rise further by end of year?

Many thanks!

MrDruu

Hey Steve, I'm in a similar situation - did Leeds approve your mortage extension? 

K_S

@mrdruu Can't speak for the OP but I've done a few this year (both new-build and non new-build) and offer extensions (with Leeds and other lenders that allow extensions) have been approved as usual. Lenders like Leeds will have secured the funding required at a certain cost so they aren't likely to reject routine extension just because of market conditions, they'll still make money on it.

MrDruu said:

Hey Steve, I'm in a similar situation - did Leeds approve your mortage extension? 

MrDruu

K_S said:

@mrdruu Can't speak for the OP but I've done a few this year (both new-build and non new-build) and offer extensions (with Leeds and other lenders that allow extensions) have been approved as usual. Lenders like Leeds will have secured the funding required at a certain cost so they aren't likely to reject routine extension just because of market conditions, they'll still make money on it.

MrDruu said:

Hey Steve, I'm in a similar situation - did Leeds approve your mortage extension? 

Hey K_S, fantastic, that's offered some reassurance! 

Thank you!

AleksandraK

Hello, we just had our mortgage offer extended for 6 months by Leeds (2.89% so low interest rate we didn't want to lose)  - they asked for a declaration form from the broker and 3 months of payslips. Applied on Wednesday and had a positive decision on Monday. Hope this helps. 

MrDruu

AleksandraK said:

Hello, we just had our mortgage offer extended for 6 months by Leeds (2.89% so low interest rate we didn't want to lose)  - they asked for a declaration form from the broker and 3 months of payslips. Applied on Wednesday and had a positive decision on Monday. Hope this helps. 

Hey Aleksandra, that’s fantastic news! Its definitely reassuring knowing that extension are still going ahead. 

I’m glad you got your extension! Thanks for your reply