A mortgage offer is the document a lender issues once it has completed all checks on your application, including affordability assessment, identity verification and a property valuation. It confirms the amount the lender will lend, the interest rate, the mortgage term, the type of product and any conditions that must be met before completion.
Receiving a mortgage offer is a major milestone in the home-buying process. It means the lender is satisfied with both you as a borrower and the property as security. The offer is typically valid for six months, though this varies by lender.
Your mortgage offer will include details of any fees, the monthly repayment amount, and what happens when the initial deal period ends. It is important to read it carefully and raise any queries with your broker or lender before instructing your solicitor to proceed towards exchange of contracts.
After submitting your full mortgage application and having the property valued, you receive a mortgage offer letter confirming a £200,000 loan at 4.5% fixed for five years over a 25-year term. Your solicitor can now move towards exchange.
Key Points
- Issued after the lender completes all checks including the property valuation
- Typically valid for six months, though this can vary
- Sets out the loan amount, interest rate, term and repayment type
- May include conditions that must be met before funds are released
- Read the offer carefully and check the details match what you agreed