Mortgage Guide
Mortgage offer to completion: what happens next?
Receiving your formal mortgage offer is a major milestone, but there are still a few important stages before you collect the keys.
Your conveyancer will continue the legal work, you'll need to prepare for exchange,
the lender's funds have to be arranged and the purchase then needs to complete.
Most of this stage is about keeping everything moving and avoiding unnecessary surprises rather than starting the mortgage process again.
Quick takeaways
- A formal mortgage offer will usually come after the lender has completed its assessment of you and accepted the property valuation.
- Your conveyancer still has legal work to complete before contracts can normally be exchanged.
- In England and Wales, exchange of contracts is normally the point at which buyer and seller become legally committed to the transaction.
- Buildings insurance is commonly needed from exchange, so don't leave arranging it until moving day.
- Keep your finances and circumstances reasonably stable until completion and tell your adviser if anything important changes.
The journey from mortgage application to getting the keys
The exact timing varies from one purchase to another, but the broad sequence usually looks something like this.
Application assessed
The lender reviews your income, commitments, credit position and the wider mortgage application.
Valuation cleared
The property is valued for mortgage purposes and any valuation issues are considered.
Mortgage offer
The lender issues its formal mortgage offer, subject to the conditions set out in that offer.
Exchange
Once the legal work is ready, contracts are exchanged and the transaction normally becomes legally binding.
Completion
The purchase funds transfer, completion is confirmed and you can collect the keys.
What does “offered subject to valuation” mean?
Sometimes you'll hear that a mortgage application has been “offered subject to valuation” before the formal mortgage offer itself arrives.
In practical terms, this usually means the lender is satisfied enough with the borrower side of the application to move towards offer, but the property valuation still needs to be completed, reviewed or accepted before the lender can issue the formal offer.
That's an important distinction because the lender isn't only assessing you. It also needs to be satisfied that the property is acceptable security for the mortgage.
If the valuation comes back lower than the purchase price or raises another property concern, that will normally need dealing with before the formal mortgage offer is issued.
Has the property been valued lower than your offer?
Find out what a lower mortgage valuation means and the options that may be available.
Your formal mortgage offer has arrived. What does that mean?
By the time the formal mortgage offer is issued, the lender will normally have completed its detailed assessment of the application and accepted the property valuation for mortgage purposes.
The offer sets out the mortgage the lender is prepared to provide for that property, together with the product details, loan amount, conditions and expiry date.
It's worth checking the offer carefully rather than simply filing it away. Your mortgage adviser can help you understand anything you're unsure about.
Check the details
Make sure the applicants, property, loan amount and product details are what you were expecting.
Check the expiry date
Mortgage offers are not open-ended. If the purchase is delayed, speak to your adviser before the expiry date becomes a problem.
Is the mortgage completely guaranteed now?
Not quite. Find out when a lender could still need to reconsider an offer before completion.
What happens after the mortgage offer while the legal work continues?
The mortgage and legal sides of a purchase are connected, but they are not the same process.
Receiving the mortgage offer does not necessarily mean your conveyancer is ready to exchange contracts. They may still be dealing with searches, enquiries, title matters, paperwork from the seller or other issues relating to the transaction.
Your conveyancer will tell you when they are satisfied that the legal work is ready for exchange and what they need from you before that can happen.
Mortgage offer received doesn't mean “everything is done”. Keep responding to your broker, lender and conveyancer until the purchase actually completes.
How do you keep the mortgage on track while waiting to complete?
You don't need to freeze your entire financial life, but it is sensible to avoid creating unnecessary changes while the mortgage is still progressing.
Keep responding to requests
If your lender or broker asks for clarification or updated evidence, deal with it promptly so it doesn't create avoidable delays.
Think before taking on significant new credit
A new finance agreement, loan or other substantial commitment can change the financial picture the lender originally assessed.
Tell your adviser if your circumstances change
A new job, income change or another material change doesn't automatically mean there's a problem, but your adviser should establish whether the lender needs to know.
Keep an eye on the offer expiry date
If legal delays or a long chain mean completion may happen after the offer expires, speak to your mortgage adviser early rather than waiting until the last minute.
Could the lender check again?
Lender processes differ, but further checks can happen. Read our guide to credit checks before completion .
Asked for updated documents?
Our Mortgage Application Documents hub covers many of the documents lenders commonly request.
What needs to happen before exchange of contracts?
Exchange is a major point in the purchase, so your conveyancer will normally want the legal and financial pieces in place before committing you to the transaction.
The exact checklist depends on the purchase, but this can include the legal enquiries being satisfactorily dealt with, your mortgage offer being in place, the deposit being available and a completion date being agreed.
There is also something buyers sometimes leave until too late: insurance.
What insurance should be in place before exchange?
There are two different conversations here: protecting the property itself, and protecting the people responsible for paying the mortgage.
Buildings insurance
Buildings insurance is the important practical one to organise before exchange.
In a typical purchase in England and Wales, exchange of contracts is when you become legally committed to buying the property. Your conveyancer will tell you exactly when responsibility passes under your particular contract, but buyers will commonly need buildings insurance to be effective from exchange.
There can be a gap between exchange and completion. So even though you haven't collected the keys yet, you may already be committed to purchasing the property if something happens to it during that period.
Your mortgage lender also has an interest in the property being adequately insured because it is the security for the mortgage.
Life insurance, critical illness cover and income protection
Buildings insurance protects the bricks and mortar. It doesn't protect your ability to keep paying the mortgage.
Moving home is therefore also a sensible time to make sure any personal protection you've arranged is set up correctly and that you know when the policies are due to start.
Life insurance, critical illness cover and income protection are generally about protecting you and your household, rather than being a standard requirement for obtaining a residential mortgage.
If the mortgage relies heavily on one or two incomes, it's worth understanding what would happen financially if illness, injury or death changed the household income.
Don't leave the buildings insurance conversation until completion day. Ask your conveyancer what date cover needs to start for your transaction and make sure your policy meets the lender's requirements.
What happens when you exchange contracts?
In England and Wales, exchange of contracts is normally the point at which the buyer and seller become legally committed to the transaction.
Before exchange, a purchase can still potentially fall through. After exchange, walking away can have significant legal and financial consequences, which is why your conveyancer will only exchange when they are satisfied the transaction is ready.
A completion date will normally have been agreed by this point, giving everyone a clear target for when ownership and the purchase funds will transfer.
If a mortgage problem arises after exchange, contact both your mortgage adviser and conveyancer immediately. Your adviser can deal with the mortgage position; your conveyancer can advise on the legal consequences for your transaction.
What happens between exchange and completion?
Once contracts have been exchanged, the focus moves towards getting everything ready for the agreed completion date.
Your conveyancer prepares for completion
The legal team will deal with the remaining completion formalities and arrange for the mortgage funds to be available when required.
You arrange any remaining money
Your conveyancer will tell you what additional funds they need from you and when those funds need to be cleared.
Organise the move
Once timings are sufficiently certain, you can deal with removals, utilities, broadband and the practical arrangements for moving day.
Keep insurance in place
Make sure the buildings insurance arranged for exchange remains in force and any personal protection is set up as intended.
What happens on mortgage completion day?
Completion is the point at which the purchase funds are transferred through the legal process and ownership of the property changes hands.
Mortgage funds are sent
The mortgage funds form part of the money your conveyancer uses to complete the purchase.
The legal transfer completes
Once the required funds have arrived and the completion process has been dealt with, your conveyancer can confirm that completion has taken place.
The estate agent can release the keys
Once the seller's side confirms completion, the estate agent is normally authorised to hand the keys over.
You can move in
The mortgage journey has reached completion — although your first mortgage payment may still have one little surprise waiting.
First payment higher than expected?
Your first mortgage payment can be different from the regular monthly amount. Here's why.
How long does it take to go from mortgage offer to completion?
There is no fixed period between mortgage offer and completion.
Some purchases move relatively quickly once the offer has been issued. Others take longer because the legal work is still ongoing, the buyer or seller is part of a chain, searches or enquiries are outstanding, or the property is a new build with a completion date further away.
The mortgage offer itself is therefore only one part of the timing. Your conveyancer is usually the best person to tell you what is still outstanding on the legal side of your particular purchase.
What if your mortgage offer expires before completion?
Mortgage offers have expiry dates, so long delays can occasionally create an issue.
If it starts to look as though the purchase will not complete in time, speak to your mortgage adviser early. Depending on the lender and circumstances, there may be an extension process or updated information may be needed.
Don't wait until the day before expiry to find out what the lender requires.
What if mortgage rates fall after you've received your offer?
Receiving a mortgage offer doesn't always mean the rate you're currently holding is necessarily the only option until completion.
Depending on the lender, product and how far through the purchase you are, your mortgage adviser may be able to review whether a more suitable deal has become available.
That doesn't mean switching is always the right move. A new product or offer can sometimes create additional underwriting, valuation or legal work, so the practical implications need to be considered alongside the potential saving.
This is one of the reasons we continue to keep an eye on things after the original mortgage has been agreed rather than treating the offer as the end of the job.
What should you check after completion?
Check when your first mortgage payment is due
It may be higher than your normal monthly payment because of the timing of completion and the interest charged before your regular payment cycle begins.
Make sure your direct debit is ready
Check the account being used and make sure sufficient funds are available for the first payment.
Check your protection policies
If you've arranged life insurance, critical illness cover or income protection, make sure the policies have started as intended and that the details remain appropriate.
Keep your mortgage paperwork somewhere safe
You'll want the offer, product details and mortgage account information available for future reference.
Related mortgage guides
FAQs
Your conveyancer continues the legal work needed before exchange. You should keep responding to any requests, avoid unnecessary financial changes, prepare for exchange and make sure buildings insurance is arranged for the appropriate date.
The lender will usually need to complete and accept its mortgage valuation before issuing the formal mortgage offer. You may sometimes hear that an application is “offered subject to valuation” while the valuation is still outstanding.
There is no fixed timeframe. It depends on how much legal work remains, whether there is a property chain, outstanding searches or enquiries and the circumstances of the purchase.
Buyers in England and Wales will commonly need buildings insurance to start from exchange of contracts. Your conveyancer should confirm when responsibility passes under your contract and your lender may also have insurance requirements.
You do not need to freeze all normal spending, but significant new borrowing or changes to your circumstances can affect the financial picture the lender originally assessed. If you're planning a substantial change, speak to your mortgage adviser first.
The purchase funds are transferred through the conveyancing process. Once completion is confirmed, ownership transfers and the estate agent can normally release the keys to you.
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