Extensions to Mortgage Offers

In light of the Covid-19 pandemic the Ministry of Housing, Communities & Local Government have recently issued guidance for buyers and sellers to be more flexible on moving dates and as such completions. In addition, they have requested that Banks should extend mortgage offers where a delay to completion takes place due to this.

UK Finance guidance is as follows:

To help home movers impacted by Covid-19, mortgage providers will give customers who have exchanged contracts the option to extend their mortgage offer for up to three months to enable them to move at a later date

As it is anticipated that there will be delays in the house buying process the Bank will offer customers an offer extension of up to 3 months in line with this guidance.

Offer documentation

Given the impact of Covid-19 and social distancing measures brought in by the government, some applicants have also been unable to obtain documentation e.g. from their employer given all non-essential business is closed. Physical valuations have also ceased. To support these customers the bank will offer a 1 month extension to all supplementary offer documentation as per the list below. The Bank currently allows offer documentation to be valid for 180 days to support an offer to a customer before requesting renewed documentation. This will now be extended by 1 month.

The following documentation has a validity period and will be offered the 1 month extension where required:

·       Signed application form

·       Employer/accountant’s reference

·       Bank statements

·       Pay slips

·       Valuation report

·       Credit Search

Hope this explains how we are supporting in this area during these uncertain times.