With rates seemingly rising by the day, those with a low-rate mortgage offer are racing to complete their sale before their offer expires.
Quick house sale specialists Quick Move Now have provided some top tips for those hoping to rush their sale through before their mortgage offer expires.
Keep on top of the sale progress
It’s important to make your solicitor and estate agent aware of important dates or deadlines you need to meet, such as a mortgage offer expiry date. Historically, asking for an extension to a mortgage offer has been a fairly straightforward process. Unfortunately, due to the current economic climate, this is no longer the case. Those applying for a mortgage offer extension are now likely to be subject to higher mortgage interest rates and more stringent affordability testing. This has resulted in some applicants finding themselves unable to secure a mortgage after their initial offer expires.
Keeping in regular contact with your estate agent and solicitor will maximise your chances of meeting your desired deadline, ensuring you’re made aware of any potential hold-ups.
Be on the lookout for any weak spots
Unfortunately, around 40% of property sales are currently falling through before completion. If your sale falls through, your move can be held up by several months. For many, that could mean the difference between completing the sale before a mortgage offer expires and having to reapply.
The majority of failed property sales are attributed to the buyer changing their mind or having difficulty securing a mortgage. Both of these threats can be reduced with effective sale management. Thorough qualification of any prospective buyers by your estate agent should highlight any potential area for difficulty securing mortgage finance, and regular contact with all parties will help you to spot and address any potential ‘weak spots’, or concerns, that may lead to your buyer withdrawing from the sale.
Have a plan
The process of buying and selling a property is notoriously unpredictable, and even the most prepared mover can experience unexpected delays and disappointments.
If you need to complete on your sale before a certain deadline, it’s important to have a plan for any unexpected complications. If you think there’s a chance you won’t be able to complete your sale before your mortgage offer expires, contact your lender in plenty of time and explore your options, and if you’re worried about your property chain falling through, it could be worth exploring chain-break solutions.
Danny Luke, Quick Move Now’s managing director, says: “Anxiety levels are high at the moment, and many buyers and sellers are concerned about increased market fragility. In the last two weeks, we have seen a significant increase in enquiries from people whose property sales have fallen through, either because their buyer has got cold feet or because they’re no longer able to afford their mortgage with a higher mortgage interest rate. Lots of would-be movers are putting their plans on hold to see how things pan out with interest rates over the next few months, and we’re definitely feeling that caution in the market.
“I have no doubt that in the medium and long term the fear will settle, and we will see a calming of the market, but I do believe that rising interest rates and inflation will have an impact on both the number of property transactions we see and the price achieved for property, long after this temporary panic has subsided.”
