A mortgage offer is the lender's formal confirmation that they will loan you the funds you need to buy a property. This is an exciting step, bringing you closer to moving into your new home.
From this point, the conveyancing process will get underway, with your solicitor ensuring all legal aspects of the sale are addressed and completed. You can also arrange a home survey, which can provide invaluable details about the condition of the property.
Summary: What Happens Next
Read your mortgage offer and solicitor's report
Sign and return the mortgage deed
Exchange contracts
Arrange buildings insurance
Complete the purchase
This process from mortgage offer to completion usually takes 8–12 weeks, depending on the property and chain.
In this guide, we explain everything you need to know about the next steps once your mortgage offer is issued, as well as how long the offer will last and what to do if it expires.
What Should I Do After Receiving a Mortgage Offer?
Once an offer is issued, your solicitor will continue the legal work (known as conveyancing) and gather the required documents to complete the sale.
While they are working on the legal aspects of your case, you will need to do the following:
1. Read Your Mortgage Offer Documents
Both you and your solicitor will receive copies of the offer from your lender, which you will need to read thoroughly. You will be responsible for reading and understanding the offer and should raise any queries with either the lender or your solicitor. This includes understanding the terms, how long the offer is valid and how long you have to accept the offer.
2. Read Your Solicitor's Mortgage Report
Your solicitor will send you their report on the mortgage offer. This will flag anything out of the ordinary and ensure you understand the mortgage terms and expectations of the lender. This includes any special conditions, for example, if you have agreed to pay off credit cards or other debt before the mortgage starts.
Keep in mind that this will be legal guidance and your solicitor won't provide financial advice.
3. Sign the Mortgage Deed
Your solicitor's mortgage report will include a Mortgage Deed. This will need to be signed and returned to your solicitor so that they can register it with the HM Land Registry.
4. Accept the Mortgage Offer
After you and your solicitor have reviewed the offer and are happy to proceed, you will need to accept the offer by signing a contract with the lender. This allows you to continue with the purchase knowing you have a loan in place.
5. Sign and Exchange Contracts
As the conveyancing process draws to a close, your solicitor will send you the contract to sign. Contracts will be exchanged, and from this point, the sale is legally binding.
6. Take Out Home Insurance
Mortgage lenders will require you to have building insurance when taking out a mortgage. This covers the structure of the building, including the walls, roof, and any fixtures included with the home.
It is also recommended to take out contents insurance, so your belongings are protected.
7. Final Steps and Completion
Completion day is the final stage before you move into your new home. A copy of the Title Deed will be sent to you, and your solicitor will forward funds to the seller’s solicitor. This marks the finalisation of the transaction - the home is now yours!
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How Long Does It Take to Complete After a Mortgage Offer?
Although there is no set time from a mortgage offer to a completion date, the conveyancing process typically takes between eight to twelve weeks. But this can vary depending on the complexity of the sale and the length of the property chain. Completion is usually one to two weeks after the exchange of contracts.
Missing paperwork, checks such as gifted deposit checks or proof of funds checks, lack of communication or slow conveyancers can cause delays. You can avoid this by choosing the right conveyancer. We recommend doing a comparison on conveyancing quotes to find the best fit for your transaction, ensuring you find a trusted and verified solicitor.
How Long Do Mortgage Offers Last?
Your mortgage offer is usually valid for three to six months, depending on the lender. Some lenders may offer longer periods for off-plan new build homes.
Can an Offer Be Extended?
Yes, a mortgage offer can be extended. If you are concerned your property purchase won’t be completed within the time frame of the offer, contact your lender as soon as possible.
The lender is under no obligation to extend or re-offer the mortgage. How long an offer can be extended is also at the discretion of your mortgage lender, but it could be a month or more.
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What Happens to My Mortgage Offer If My New Build Is Delayed?
New build property developers may overrun on timeframes, or there may be delays in the supply chain. As a result, your mortgage offer could expire before your new home is ready.
If you are buying a new build home and have concerns, or your offer is close to expiring or has expired already, there are a few things you can do:
- Talk to your lender and explain the situation as they may be able to extend the offer
- Contact a mortgage broker to explore options with longer offer periods or deals designed for new-build homes
- Reapply for the mortgage
What If I Need to Reapply for My Mortgage?
If your mortgage offer expires, you may be able to submit a new application with the lender. You may want to consult a mortgage broker to help you explore your options.
Will I Have to Redo the Mortgage Affordability Checks?
Yes, a lender will want to know your financial position is still stable and you will need to undergo another full credit check.
If your finances or circumstances have changed from the time the offer was first made, the lender must ensure you are still a good candidate for a mortgage. If your credit score has increased or interest rates have gone down, you could receive a better mortgage offer than your original agreement.
Will Another Mortgage Valuation Be Required?
When reapplying, you may need another valuation. A mortgage valuation must be an accurate reflection of the current market value of the home. Whether this is required will depend on your lender and their requirements.
FAQs
How long does it take to get a mortgage offer?
The average time for a mortgage application to be processed in the UK is between 18 to 40 days.
Can a mortgage offer be withdrawn?
Yes, a mortgage offer can be withdrawn by a lender. If your financial circumstances change and there is potential for risk with their investment, they may feel that you are no longer a desirable candidate for the loan.
Can I get a mortgage offer before I find a property to buy?
No, you cannot get a mortgage offer before knowing what home you are buying. Part of the terms of the mortgage offer are based on the property and its value.
You can get a Mortgage Agreement in Principle before house hunting, giving you an idea of how much you could borrow. It is not a formal mortgage offer, but it can show estate agents and sellers that you are a serious buyer.
