What is a mortgage offer?

A mortgage offer is a formal offer of the loan from your mortgage lender (the bank or building society).

You receive it once your mortgage lender has fully assessed your application for a mortgage and approved any supporting documentation they have requested (usually pay slips and bank statements).  Your mortgage lender will have also undertaken a valuation report to check the property is worth at least the amount your mortgage lender is going to lend to you.


What does a mortgage offer contain?

A mortgage offer is always in a standard format as prescribed by the Financial Services Authority.

It is confirmation that your lender is happy to offer a mortgage to you.

A mortgage offer sets out:

  • The amount of money being provided
  • The mortgage product
  • The interest and fees attached to the loan
  • The terms and conditions that are attached to the loan
  • Details of the repayment of the mortgage
  • Details of your monthly payments
  • Details of early repayment charges
  • The date the mortgage offer expires

If there are any discrepancies it is important that you contact your mortgage lender as soon as you can in order for them to correct any mistakes or clarify any issues.


What happens if I do not meet the terms of my mortgage?

Your mortgage offer is a legal agreement whereby a sum of money is lent to you on the security of the property.

If you do not observe the terms of the mortgage, your mortgage lender has the right to take possession of the property.


When does my solicitor need my mortgage offer?

The sooner your solicitor receives your mortgage, the sooner your solicitor will be able to proceed knowing that the funds for the purchase having been secured.

If you would like Ringrose Law to act on your behalf in your sale or purchase, please contact a member of the Conveyancing team at Ringrose Law at one of our offices in Lincoln, Boston, Grantham, Sleaford, Spalding and Newark.

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