Advise - Lloyds mortgage offer not for full 6 months

GoonerByron

Hi,

Need some advice, bit worried with fixed rates rising daily.

I have a mortgage which the fixed period is coming to an end of ERC period 28th Feb 2023. 

To get a fixed rate as early as possible, I applied to Lloyds for a 3.33% 5 year fix on 6th September and received offer quickly on 8th September.

Lloyds website says their offers last 6 months. However, the expiry date of my offer says 28th Feb, the same day as my current deal expiry meaning I believe I would still get a ERC by 1 day.

I do not understand why the Lloyds offer is not for a full 6 months leaving me short. I’ve tried to phone them over the last few weeks and have been given various answers between speak to your conveyancer (barely any response in 2 weeks) and you will just have to reapply at a new rate. The problem is rates have already gone up considerably and this appears to be their error in not giving a full 6 months from either application or offer date.

Any helpful advice? Am I likely to get anywhere with them or will I just have to reapply at a newer higher rate at no fault of my own?

K_S

@goonerbyron Mainstream lender mortgage offer validity policy differs across lenders but usually falls into one of the following buckets -

- 6 months from date of application

- 6 months from date of offer

- a fixed end-date (complete-by date) which usually gives you 5-7 months of validity depending on the timing. For example if you applied for a Halifax mortgage on 01st September or today (29th Sep), the complete-by date would be 31/03/2023 as that is the product's complete-by date. In November or so, I'd expect Halifax to update the complete-by dates for products to 30/06/2023 and so on.

Being part of the same group (LBG), I imagine Lloyds also falls within the 3rd bucket above hence the fixed complete-by date of 28/02/2023 for the product that you applied for. To be fair to Lloyds, this would have been clearly mentioned in the illustration that you received prior to submitting the full application, like the below excerpt from a Lloyds offer.

It might still be salvageable though. Speak to your solicitor, perhaps they can drawdown the funds on 28th Feb (completing on the Lloyds mortgage) and pay off the current mortgage on the next working day. 

If nothing works then as a last roll of the dice you could make a formal complaint citing the part of their website where they say that mortgage offers are valid for 6 months.

GoonerByron said:

Hi,

Need some advice, bit worried with fixed rates rising daily.

I have a mortgage which the fixed period is coming to an end of ERC period 28th Feb 2023. 

To get a fixed rate as early as possible, I applied to Lloyds for a 3.33% 5 year fix on 6th September and received offer quickly on 8th September.

Lloyds website says their offers last 6 months. However, the expiry date of my offer says 28th Feb, the same day as my current deal expiry meaning I believe I would still get a ERC by 1 day.

I do not understand why the Lloyds offer is not for a full 6 months leaving me short. I’ve tried to phone them over the last few weeks and have been given various answers between speak to your conveyancer (barely any response in 2 weeks) and you will just have to reapply at a new rate. The problem is rates have already gone up considerably and this appears to be their error in not giving a full 6 months from either application or offer date.

Any helpful advice? Am I likely to get anywhere with them or will I just have to reapply at a newer higher rate at no fault of my own?

GoonerByron

K_S said:

@goonerbyron Mainstream lender mortgage offer validity policy differs across lenders but usually falls into one of the following buckets -

- 6 months from date of application

- 6 months from date of offer

- a fixed end-date (complete-by date) which usually gives you 5-7 months of validity depending on the timing. For example if you applied for a Halifax mortgage on 01st September or today (29th Sep), the complete-by date would be 31/03/2023 as that is the product's complete-by date. In November or so, I'd expect Halifax to update the complete-by dates for products to 30/06/2023 and so on.

Being part of the same group (LBG), I imagine Lloyds also falls within the 3rd bucket above hence the fixed complete-by date of 28/02/2023 for the product that you applied for. To be fair to Lloyds, this would have been clearly mentioned in the illustration that you received prior to submitting the full application, like the below excerpt from a Lloyds offer.

It might still be salvageable though. Speak to your solicitor, perhaps they can drawdown the funds on 28th Feb (completing on the Lloyds mortgage) and pay off the current mortgage on the next working day. 

If nothing works then as a last roll of the dice you could make a formal complaint citing the part of their website where they say that mortgage offers are valid for 6 months.

GoonerByron said:

Hi,

Need some advice, bit worried with fixed rates rising daily.

I have a mortgage which the fixed period is coming to an end of ERC period 28th Feb 2023. 

To get a fixed rate as early as possible, I applied to Lloyds for a 3.33% 5 year fix on 6th September and received offer quickly on 8th September.

Lloyds website says their offers last 6 months. However, the expiry date of my offer says 28th Feb, the same day as my current deal expiry meaning I believe I would still get a ERC by 1 day.

I do not understand why the Lloyds offer is not for a full 6 months leaving me short. I’ve tried to phone them over the last few weeks and have been given various answers between speak to your conveyancer (barely any response in 2 weeks) and you will just have to reapply at a new rate. The problem is rates have already gone up considerably and this appears to be their error in not giving a full 6 months from either application or offer date.

Any helpful advice? Am I likely to get anywhere with them or will I just have to reapply at a newer higher rate at no fault of my own?

Thanks for this. Understand this now but it is frustrating you do not see this in the application process until after you have selected the rate and received your illustration. Lloyds own website also shows ‘ Most mortgage offers are then valid for six months.’ Have made a complaint on this basis as you mentioned also

Looks like I will apply to a different lender and be sure to now check this first!

Thanks for your help.

froomer

I did mine today with Lloyds and it says that the mortgage on or before 28th Feb 2023. I'm going to switch in Feb, but also have the flexibly of pulling out should Truss make a U-turn (highly unlikely!)

CSL0183

I guess they are calculating 6 calendar months rather than 6 full months so if you applied on the 30th Sept, you are already in 1 month and then the 2nd month starts the day later on 1st October.

How frustrating. 

mose_2

Will I have the same problem here, fix doesn’t end until 3/3/23 I’ve submitted application yesterday 29/09 so not six months exactly until Monday. 

wheldcj

My ERC expires early March and started panicking late last week that we needed to fix a deal.  Lloyds seemed the best and they have called me twice both times to advise their deals are stuck on a completion date of 28th Feb.

mose_2

Damn. Was hoping it would be six months from offer which shouldn’t be until Monday at the earliest. Like you I panicked slightly. Looks like this is going to be a few days to early for me. 

mose_2

Looks like this rate is now gone, now looking at 4.43%. Will this def run out on the 28th feb if I’ve not had offer yet? 

housebuyer143

mose_2 said:

Looks like this rate is now gone, now looking at 4.43%. Will this def run out on the 28th feb if I’ve not had offer yet? 

Yes. If that's the completion date on the product, that's the date you need to complete by. 

mose_2

Thanks any idea where I can view the mortgage illustration, not sure if they email a copy but can’t seem to view it anywhere.