Understanding a mortgage offer
A mortgage offer is the lender's formal commitment to lend. It looks dense but breaks down into a handful of headline numbers and a list of conditions you'll need to meet.
What this letter usually is
The offer follows your application and valuation. It sets out the loan amount, the interest rate and product, the term, the fees, the monthly repayment, and any special conditions the lender wants met before completion. It also has an expiry date, usually 3–6 months from issue.
The numbers to check
Focus on these first:
- Loan amount and product (e.g. 2-year fixed at 4.79%)
- Term of the mortgage (e.g. 25 years)
- Monthly payment during the fixed/product period
- What happens after the fix (usually reverts to the lender's standard variable rate — SVR)
- Arrangement fee, valuation fee, and whether they're added to the loan
- Early repayment charges (ERCs) — how much and for how long
- Offer expiry date
Conditions to satisfy
Most offers have conditions attached — proof of buildings insurance, a signed direct debit, a satisfactory search result, evidence of deposit source, or specific repairs to the property. Missing one can delay or void the offer.
The Illustration and KFI
The offer comes with a European Standardised Information Sheet (ESIS) that shows the total amount payable over the term and the APRC. It looks scary because it includes interest across the whole term at the current rate — but it's for comparison, not what you'll actually pay if you remortgage in a few years.
Red flags to watch for
- An expiry date sooner than your expected completion
- Early repayment charges that extend past the product period
- Conditions requiring works you can't complete before completion
- A payment amount that stretches your budget on the SVR reversion
What to do next
- Note the offer expiry date and share with your solicitor
- Confirm buildings insurance is in place from exchange
- Set a diary reminder 4–6 months before the fixed rate ends, so you can remortgage
- Save the offer document securely
Frequently asked questions
Q. How long is a mortgage offer valid?
A. Typically 3–6 months from the date of issue. If completion is delayed beyond the expiry, you may need to reapply or ask for an extension.
Q. What is the SVR?
A. The Standard Variable Rate is the default rate your mortgage reverts to when your fixed or tracker product ends. It's usually much higher, so most people remortgage before it kicks in.
Q. Can I change the mortgage after the offer?
A. You can ask the lender, but changes may trigger a fresh underwrite or a different product. Talk to your broker before changing anything.
Q. Can ClariDoc explain my mortgage offer?
A. Yes — upload it and ClariDoc will summarise the rate, term, fees, conditions and expiry. For advice, speak to a qualified mortgage broker.
Important disclaimer
This is general information about UK mortgage offers. It is not financial advice. Your home may be repossessed if you do not keep up repayments on your mortgage. For personal advice, speak to a qualified mortgage broker or financial adviser.
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