When buying a new-build home, you may receive your mortgage offer while construction is still underway. If the build takes longer than expected, the offer could expire before you can complete.
An extension may be possible, but it is not automatic. Start by checking your offer’s expiry date against the developer’s latest completion estimate.
What to do if your new-build is delayed
Start with these four checks if your expected completion date has moved.
OFFER DATE
Check your offer date
Know when your mortgage offer expires and how much time you have left.
BUILD DATE
Get the latest build date
Ask the developer for its latest expected completion date and any revised timetable.
ADVISER
Speak to your adviser early
They can check whether a mortgage offer extension is available and what the lender may need from you.
FINANCES
Keep your finances steady
Avoid unnecessary new borrowing or major financial changes while the lender may need to reassess your application.
What happens if your mortgage offer expires before completion?
Approaching expiry
Check whether you can extend it
Check whether your lender allows an extension and when you need to request it. Asking for an extension does not, by itself, keep the offer valid.
Already expired
Confirm your funding before you complete
Do not assume the lender will release the funds once your offer has expired. Some lenders allow a short grace period under specific conditions. Otherwise, you may need an approved extension or a new mortgage offer before completing.
Your adviser and conveyancer should confirm the position with the lender before you rely on the mortgage funds.
What if you have already exchanged?
In England and Wales, exchanging contracts commits you to the purchase. Your mortgage offer expiring does not automatically release you from that agreement.
If you cannot complete, you could risk losing your exchange deposit and face further costs, depending on the contract. Contact your conveyancer as well as your mortgage adviser as soon as you know there may be a problem.
Your conveyancer can check the completion terms and any protection against build delays, including whether a long-stop date gives you a right to withdraw.
How long does a mortgage offer last?
Some lenders give new-build buyers an initial mortgage offer lasting six months, while others allow around nine months. Check the expiry date on your own offer rather than assuming a standard period applies.
A longer initial offer does not guarantee an extension. Some lenders allow extra time after further checks, while others do not offer a standard extension for new-build purchases.
Compare the offer deadline with the developer’s expected completion date, allowing for the possibility that the build may take longer.
Can you get an extension on a mortgage offer?
Yes, some lenders may allow you to extend a mortgage offer if completion is delayed, but it is not guaranteed. The lender may want to confirm that your circumstances and the property still meet its criteria before agreeing to the extension.
With a new-build mortgage offer extension, the lender may also want an updated completion date or valuation, depending on its process.
The key is to ask before the offer expires. Your adviser can check what the lender allows and whether an extension is likely to be the simplest option.
What might your lender check again?
If you ask to extend a mortgage offer, the lender may need to check that the original application still meets its criteria. What they review will depend on the lender and how much time has passed.
They may look again at:
- Your income and employment to confirm your circumstances have not materially changed.
- Existing borrowing or commitments that could affect affordability.
- Your credit information if a new credit check is required.
- The property valuation to make sure it still supports the mortgage.
- Current lending criteria if anything has changed since your original application.
Not every extension will involve all of these checks.
What if your offer cannot be extended?
If the lender will not extend the offer, you may need to submit a new mortgage application before you can complete the purchase.
That can mean a fresh affordability assessment and another look at the property. The mortgage products and interest rates available may also have changed since you first applied, so the new application may not be on the same terms.
Your adviser can compare the available options and help you decide whether to stay with the same lender or look elsewhere.
How Muttuo Mortgages can help
If your new-build completion date moves, we can help you understand what this means for your existing mortgage offer and the options available next.
Check whether your lender may allow a mortgage offer extension
Review how the revised completion date could affect your mortgage
Compare suitable options from more than 100 lenders if you need to apply again
Talk through your next steps
Tell us when your mortgage offer expires and the latest expected completion date. We can help you work out what to do next.
Frequently asked questions about mortgage offer expiry
Can a lender refuse to extend a mortgage offer?
Yes. A mortgage offer extension is not guaranteed. The lender may review your circumstances, the property and its current criteria before deciding whether to extend the offer.
How long does a mortgage offer extension take?
It depends on the lender and whether any further checks are needed. Speak to your adviser before the offer expires to give the lender as much time as possible to consider the extension.
Do you have to complete before your mortgage offer expires?
Usually, your mortgage offer needs to remain valid when you complete and the lender releases the funds. If completion will fall after the expiry date, you may need an extension or a new mortgage offer.
Will I keep the same rate if my mortgage offer is extended?
Not necessarily. Whether you keep the same rate will depend on the lender and how it handles the extension. If you need to make a new mortgage application, the products available may have changed.
Can I change lender if my new-build is delayed?
Potentially. If your existing offer cannot be extended, your adviser can compare other lenders. You would need to make a new application and allow enough time for any affordability checks and property valuation.
Your home may be repossessed if you do not keep up repayments on your mortgage.
