In an ideal world, the purchase of your home will complete within one or two weeks of exchanging contracts with the seller. It is possible to complete even quicker, but most mortgage lenders need five working days to release the funds. Completion may also take longer for a number of other reasons. These can include if you are currently renting a property and can only give notice once you have exchanged contracts on your new home, the money required for fees isn’t instantly available and if you find yourself in a chain of house purchases and one falls through. In this article, how long until completion after mortgage offer, we take a look at the mechanism and process behind a residential conveyance.
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For a free initial discussion on how we can help you with the legal aspects of buying or selling your house, get in touch with us today. We will review your situation and keep you regularly updated, discussing progress in a clear and approachable manner. Early expert legal assistance ensures no mistakes are made and also avoids the stress of dealing with these issues on your own. Simply call us on 0345 901 0445 or complete our online enquiry form and a member of the team will get back to you.
Using a mortgage to buy a house
A mortgage offer is confirmation that your application for a mortgage has been checked and approved. Obtaining an offer will entail a certain amount of form filling providing details of your circumstances and also information about the house you are looking to buy. This will include a valuation report demonstrating to the bank that the property is worth what you are intending to pay for it.
Most banks will issue a mortgage offer within a few days of receiving your property valuation report – as long as they have all the other necessary information. As it takes them about five days to receive the report, the time between valuation and mortgage offer is generally around one week. Remember, you can apply for a mortgage in joint names with a partner, friend or relative. Once you have received your mortgage offer, it is likely to be valid for around three to six months.
Is it possible to arrange a mortgage without having found a house to buy?
If you have decided you are going to buy a new home, it is possible that you have yet to identify a property that ticks all the boxes. This doesn’t stop you from arranging a mortgage so that when the right property does come along, you are ready to move on it quickly. This is called applying for a mortgage in principle. Usually valid for between 30 and 90 days, this can be approved much more quickly and gives you an idea of how much the lender would be prepared to let you borrow – based on your financial situation. It also shows estate agents and sellers you are serious about buying.
The time it takes to get a mortgage offer usually depends on a range of factors, including the property you’re buying, the lender you choose, and how quickly you provide it with the necessary information. Being prompt with requests for information from your lender will help to speed up the mortgage offer process.
How long does a mortgage offer last?
All mortgage offers last for a fixed time and typically range from three to six months. The clock usually starts once the offer is issued, but some lenders count the days from when you first apply. Others will specify a date by which you must complete on the purchase, so make sure you find out how long your mortgage offer is valid for before signing.
If you’re buying a new-build property, you may be able to get a mortgage offer extension of between three and six months. Banks and building societies may also give mortgage offer extensions to buyers affected by events outside their control.
Can a lender withdraw their offer?
Although it is completely within the rights of your lender to withdraw their offer of a mortgage to you, it is a relatively rare occurrence as it is unlikely your personal finances will be reassessed after a mortgage offer has been made. If you’re worried about your mortgage offer being withdrawn, one way to protect yourself is to complete your purchase as soon as possible after exchanging contracts. That way, you reduce the risk of being contractually obliged to buy a house with no way of paying for it.
How we can help
We have a proven track-record of helping clients buy and sell their homes no matter the size. We will guide you through all the necessary legal due diligence in a comprehensive and timely manner. We firmly believe that with the right solicitors by your side, the entire process will seem more manageable and far less daunting.
How to Contact our Residential Property Solicitors
It is important for you to be well informed about the issues and obstacles you may face during the transaction. However, expert legal support is crucial in terms of saving you money and ensuring you achieve a positive outcome.
To speak to our Residential Property solicitors today, simply call us on 0345 901 0445, or allow a member of the team to get back to you by filling in our online enquiry form. We are well known across the country and can assist wherever you are based. We also have offices based in Cheshire and London.
Disclaimer: This article provides general information only and does not constitute legal advice on any individual circumstances.
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