Buying a new property – mortgage offer extensions

We recognise that people looking to move into a new home are facing significant stress due to the impact of Coronavirus on their finances. For many, their move could be delayed because of current social distancing measures.

We’re offering support for clients who have exchanged contracts by extending their mortgage offer for up to three months if they are unable to complete the purchase because of the ongoing Coronavirus situation. This applies to both residential and Buy to Let mortgages.

Who can apply for an extension to their mortgage offer?

If a client has exchanged contracts on a residential or Buy to Let property but completion has been delayed because of Coronavirus, we’ll extend their mortgage offer for up to three months so that they can complete the purchase at a later date.

How can a client apply for an offer extension?

As long as we have confirmation from your client’s solicitor that contracts have been exchanged, we’ll grant an extension of up to three months on their mortgage offer.

What evidence will you need to see?

We’ll need written confirmation from your client’s solicitor that contracts have been exchanged.

What if the purchase falls through but my client finds a new property quickly?

If this is the case, our usual underwriting procedures will apply. You’ll need to submit a new application for your client which will be subject to our standard lending policy and affordability checks.

What happens if there’s a substantial change to a client’s circumstances during the extension period?

If any of your client’s circumstances change substantially during the extension period, whether those changes are personal, income-related or there are material changes to the terms of the property purchase, contact us and we’ll do our best to help.

What if a client hasn’t yet exchanged contracts and their mortgage offer is due to expire?

Our mortgage and remortgage offers are valid for a period of six months from the date of application. If exchange hasn’t taken place during this six month period, then you’ll need to submit a new application for your client which will be subject to our standard lending policy and affordability checks.

We’re here to help

While we’ve stopped all field visits to brokers, we’re still fully able to support you by telephone and email. If you have a question about a case, contact us and we’ll do our best to help.