Mortgage Offers Explained: validity, expiry, and what to do

Your formal commitment from the lender

What is a mortgage offer?

A mortgage offer is a formal, written document from the lender confirming they are prepared to lend you the money to buy a specific property, subject to certain conditions. It is issued after the lender has completed a full underwriting assessment of your application, reviewing your income, outgoings, credit history, and the property itself.

The offer document sets out the key terms of your mortgage: the loan amount, the interest rate, the mortgage term, the repayment type, and any conditions you need to meet before or after completion. Your solicitor receives a copy too, and will use it to proceed towards exchange and completion.

Receiving your mortgage offer is a significant milestone. It means the lender is satisfied with your application and the property is acceptable security. Your solicitor can now formally work towards exchange.

Understanding your window

How long does a mortgage offer last?

Most mortgage offers are valid for 3 to 6 months from the date of issue. The majority of high street lenders issue offers valid for 6 months. The validity period starts from when the offer is issued, not from when you applied.

The interest rate offered in your mortgage offer is typically locked in for the duration of the offer period. This means even if rates change in the market during your purchase, your agreed rate is protected, unless the offer expires and you need to renew.

If your purchase is running late

What if my offer expires?

If your purchase is running close to the expiry date of your mortgage offer, the most important thing is to contact your mortgage broker as early as possible. Do not wait until expiry day.

• Request an extension.Many lenders will grant an extension of 1–3 months if requested before expiry. Your broker will handle this on your behalf. It's often a straightforward process, but it needs to be initiated in good time.
• A new valuation may be required.Some lenders will request a new valuation as a condition of the extension, particularly if property prices in the area have moved significantly since your original offer.
• Rate changes on renewal.If the offer has to be reissued from scratch (rather than extended), your rate may change to reflect current market rates. This is particularly relevant if rates have moved since your original offer was issued.
• Credit recheck possible.Some lenders will run a new credit check as part of an extension or renewal. Avoid taking on new credit between offer and completion to protect your credit profile.

Keep the lender informed

Changes after the offer

Once a mortgage offer has been issued, it's based on the information you provided at the time of application. If your circumstances change materially between offer and completion, the lender needs to know, as significant changes can trigger a reassessment.

• Change of employment.Starting a new job, even on a higher salary, can trigger a reassessment, particularly if it means a change from employed to self employed status, or if you're in a probationary period.
• Taking on new debt.A new loan, car finance, or large increase in credit card balances can affect your affordability assessment. Never take on new credit between offer and completion without speaking to your broker first.
• Change to the property.If the property changes in a way that affects its value or mortgageability, for example if significant damage is discovered, the lender needs to be informed.
• Final credit check.Most lenders carry out a final credit check just before releasing funds on completion day. Anything that has changed since your application could potentially affect this.

The golden rule: if anything significant changes between offer and completion, speak to your broker immediately. They can advise whether it needs to be reported to the lender and manage the conversation on your behalf.

If you decide not to proceed

Declining or withdrawing

You are never legally obligated to proceed with a mortgage offer. If your circumstances change, you find a better deal, or you decide not to purchase the property, you can decline the offer at any time before completion.

There is no direct financial penalty for declining an offer, however any fees already paid (such as the lender's valuation fee or a product booking fee) are typically non refundable. Your solicitor's costs up to that point may also be charged.

If you have already exchanged contracts but the lender then withdraws the offer, a rare scenario but possible if misrepresentation or a major change in circumstances is discovered, the consequences are serious. You may lose your deposit and face a claim from the seller. This is why transparency throughout the process is essential.

If you're simply unsatisfied with the product or lender, the right time to address this is before exchange, not after. Your broker can explore alternative lenders and products while your current offer is still in place.