Updated: December 17, 2021

What Can Happen to Your Mortgage Offer with a Change of Circumstances

Worried how a change of circumstances affects your mortgage offer? Our guide goes over all the rules, whether your income changes or it's a different property.

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Pete Mugleston

Author: Pete Mugleston - Mortgage Expert

Updated: December 17, 2021

Buying a home can be a long process which means that things can, and do, change. While not all changes will be relevant to your mortgage application, any that involve your job, earnings or general financial position, will require a conversation with your lender.

By following this guide, you’ll have a clearer understanding of what changes in circumstances can affect your application, and the steps you can take to still secure the mortgage you need.

What changes in circumstance could affect your mortgage application?

In most mortgage offers, the small print includes a rule stating that you must inform your lender of any material change in circumstances.

Here are some examples of what that includes:

  • You want to change the property you want to buy or the original one is no longer available
  • The applicant has become seriously ill
  • Becoming bankrupt
  • Receiving a valuation that is much higher than your mortgage offer

The implications of these changes depend on how they affect your personal finances and ability to repay your mortgage. This is where a mortgage broker can be really helpful. They will understand how a lender might react to any of the changes listed above and will advise you on the best way to ensure you can still get a mortgage.

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What does it mean for your mortgage application?

Worst case scenario – your mortgage offer could be withdrawn, resulting in the sale falling through. Mortgage offer rules state that a lender must be informed of any change in circumstances that could affect your ability to repay.

If not, it’s likely the change will be picked up in the final checks made before completion. This could put the whole property sale at risk right at the point when the keys are about to be handed over to you.

In addition, your lender could add notes to your application for other potential lenders to see.

However, if you inform your lender about the situation – whatever that may be – they will likely reassess your application and move forward from there. This could result in your receiving a new, lower mortgage offer than your original one.

Alternatively, if you speak with a mortgage advisor they can help you find a new lender if necessary, who can provide the mortgage you needed on the original terms.

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How to get a mortgage if my circumstances change after receiving an offer

If, for whatever reason, your circumstances significantly change, you must inform your lender straight away. If the offer is withdrawn – don’t panic! There’s some steps you can take straight away that can help put your mortgage application back on track.

  1. Get your updated documents ready: Get together all the paperwork relating to your new circumstances and your finances as you will be required to either update your existing application or make a new one. Having the paperwork to hand will make that process easier. It will also ensure you can answer any questions that arise when you talk to your new lender and can show them proof of any new salary, if it’s temporary or permanent, the property valuation or the details of the new home you’re interested in. Our guide to mortgage applications will give you the full list of documents you need.
  2. Check your credit reports: This is especially important if your circumstances have changed. Knowing the latest details that are logged about you and your finances means you can be prepared for any questions your new lender might ask you about why your circumstances have changed. You can also make sure the details on your reports are correct and take steps to have them corrected where required. Our dedicated credit reports hub makes it easy to download your credit reports.
  3. Speak to a mortgage broker: Get your paperwork together and then speak with a mortgage adviser who has experience in helping people in your situation secure a mortgage. Your broker will discuss your application and circumstances and can advise you of any rules relating to your mortgage offer. They can also help you complete a new application, with a new lender if necessary and take you through the process to make it easier and crucially, more likely to be approved.

With our free to use mortgage broker matching service we’ll take some of your details which will allow us to place you with the right broker for your requirements. Get in touch to find out more about how we can help you.

Can you remortgage

Remortgaging is one option for existing home owners experiencing a change in circumstance, including those listed above. This will give you the opportunity to complete a new application form with your current financial situation (after the change).

However, while your history of managing your mortgage repayments will prove positive for your application, other elements, including your new circumstances might be less helpful. By speaking with a mortgage broker experienced in cases like yours, they will advise you as to which lender is best placed to provide you with a mortgage and help you get a yes from your chosen lender.

Get matched with an experienced mortgage broker if your circumstances have changed

Personal circumstances can change all the time so try not to worry if yours have altered after you receive a mortgage offer to buy a new home. Instead, contact us and we’ll connect you with a mortgage advisor who has experience helping people in these situations.

You can then have a free, no obligation chat with a broker and move forward. Having expert advice as you buy a home can help make the process easier and give you a better chance of getting your mortgage application approved.

Ask a quick question

We know everyone's circumstances are different, that's why we work with mortgage brokers who are experts in all different mortgage subjects. Ask us a question and we'll get the best expert to help.

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Pete Mugleston

Pete Mugleston

Mortgage Expert

About the author

Pete, an expert in all things mortgages, cut his teeth right in the middle of the credit crunch. With plenty of people needing help and few mortgage providers lending, Pete found great success in going the extra mile to find mortgages for people whom many others considered lost causes. The experience he gained, coupled with his love of helping people reach their goals, led him to establish Online Mortgage Advisor, with one clear vision – to help as many customers as possible get the right advice, regardless of need or background.

Pete’s presence in the industry as the ‘go-to’ for specialist finance continues to grow, and he is regularly cited in and writes for both local and national press, as well as trade publications, with a regular column in Mortgage Introducer and being the exclusive mortgage expert for LOVEMoney. Pete also writes for OMA of course!

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FCA Disclaimer

*Based on our research, the content contained in this article is accurate as of the most recent time of writing. Lender criteria and policies change regularly so speak to one of the advisors we work with to confirm the most accurate up to date information. The information on the site is not tailored advice to each individual reader, and as such does not constitute financial advice. All advisors working with us are fully qualified to provide mortgage advice and work only for firms that are authorised and regulated by the Financial Conduct Authority. They will offer any advice specific to you and your needs.

Some types of buy to let mortgages are not regulated by the FCA. Think carefully before securing other debts against your home. As a mortgage is secured against your home, it may be repossessed if you do not keep up with repayments on your mortgage. Equity released from your home will also be secured against it.

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