Mortgage Approval Term - 6 Months?

D

dowlinj

Registered User
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38
Hi,

I've just put a booking deposit down on a new house which wont be ready for 9-12 months. I have to sign the papers in a couple of weeks along with putting down the rest of the 10% deposit.

I was wondering if it was true that the mortgage approval term is only for 6 months (this is what the mortgage broker told me). I have been approved by the broker for the amount required but have not chosen a particular product/financial institution to go with just yet. I know I need to have mortgage approval before I can sign the papers. Does anyone know what the situation is in this case? Do I get mortage approval now and then reapply in 6 months?
 
My experience was that we could sign the letter of offer from the bank that had the best rate at the time, but that we didn't have to go with them at the close of sale. In fact, our broker kept an eye on the market several times until closing and let us know if there were any changes.

I understood that this would have been the case anytime, not just after 6 months. Could be wrong though.
 
Thanks for that. That's what I wanted to hear. As long as I'm not tied down to a particular provider and I can shop around again when the time comes I'm happy enough. Approval appears to be what's important at this stage in the process and not the specifics about who'll be providing the finance.
 
DON'T sign contracts without a letter of offer whatever you do!!!

Choose a lender that you feel you would like to go to and get a letter of offer issued. If you want to shop around afterwards do, at least you will have the lender that you originally went with to fall back on.
 
You can receive mortgage approval within 24 hours.

Once the loan offer is issued it usually stays valid for approx 6 months
 
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