Getting Your Mortgage Offer

Getting your mortgage offer is a key milestone in the mortgage and home buying journey.

What is a mortgage offer?

A mortgage offer is the final document that is issued by a lender when your mortgage has been fully approved. The mortgage offer document means that the lender has assessed your application, including your credit file, income, affordability and a property valuation.

How will I know when my mortgage offer has been issued?

Here at The Mortgage Plan, your dedicated Mortgage Broker will contact you to let you know the good news that your mortgage has been offered. They will also carry out checks on the offer to ensure that it is correct including the product, and loan amount is correct.They will also look for any inaccuracies including name misspellings or typo errors.  The mortgage lender may also contact you to let you know that your mortgage offer has been issued.

How do I get a copy of my mortgage offer?

Your mortgage lender will issue three versions of your mortgage offer. A legal copy will be sent to your solicitor, a broker copy will be made available to your Mortgage Broker and a customer copy will be made available directly to you. Some lenders will post this to you, some will email a copy to you or they may have a mobile app for you to download.

What happens if there is a problem with my mortgage offer?

There can be instances where a problem may arise with your mortgage offer. The lender may have placed a retention on your mortgage. This means that they restrict the loan amount available to you until a certain condition is met. A typical example of a retention being applied is if the lender finds a defect with the property at valuation stage. As an example they may restrict the loan amount by £10,000 until the property is fitted with a new roof. In this case they will hold back £10,000 until you have the works carried out. Following a satisfactory inspection the funds will then be released to you. This can cause a cash flow issue with your new purchase if you are relying on all of the funds to complete your transaction.

What happens after my mortgage offer is issued?

The offer document enables your solicitor to arrange exchange and completion of your new property purchase. Your solicitor can request the funds from the lender, along with your deposit which will enable completion. Your solicitor should be in contact with you shortly after your offer is issued to discuss the next steps and look at potential completion dates.

Can my mortgage offer be withdrawn?

Yes, the lender does have the right to withdraw your mortgage offer. This doesn’t happen very often, but the lender can withdraw prior to completion. Typical reasons for a lender to withdraw a mortgage offer include a change of circumstances, for example if your income reduces, or if they are concerned about a specific risk that has changed since the mortgage offer was issued.

How long is my offer valid for?

This is lender and product specif. Your mortgage broker will be able to let you know before applying for your mortgage product how long the offer will be valid for when it is issued. In some instances, this can be a key part of initial product selection. If you are buying a new build property off plan, with a completion date of more than 6 months away, your Mortgage Broker may recommend a product that has an offer expiry date of 12 months. Ask your dedicated Mortgage Broker for more information.

Expert advice without the fees! Looking for help or advice?

Complete our contact form here and your dedicated Mortgage Broker will be in touch with you soon to deliver expert advice: