How Mortgage Offers Can Be Withdrawn and How to Protect Yours

Has your mortgage offer been withdrawn? You’re not alone. Even when everything seems to be going smoothly, lenders can pull offers late in the process – even moments before completion.

So what are the reasons for a mortgage offer to be withdrawn?

A lender may withdraw a mortgage offer for a variety of reasons at their discretion. Common examples will include changes to your income, a drop in credit score, or even concerns around potential fraud. But even if your offer is withdrawn, it’s important to know that this does not mean the end of your mortgage journey.

In this article, we cover everything you need to know about why mortgage offers are withdrawn, how you can best protect yourself during the approval stages, and the next best steps if your offer has been withdrawn. Let’s begin.

Why Do Mortgage Offers Get Withdrawn?

Mortgage offers can be withdrawn for several reasons – often at the lenders discretion. The most common reasons will include an expired offer, sudden changes to your income, or issues that are flagged during a final credit check. However, there could be additional concerns that lenders will take precautions against. These can include suspicion of fraud or any problems uncovered during their property valuation.

That said, it’s relatively uncommon for mortgage offers to be completely withdrawn and knowing the most common reasons upfront can help you avoid common mistakes that may raise concerns during affordability checks and underwriting.

Let’s take a look at the main reasons why a mortgage offer might get withdrawn:

Change in Financial Circumstances

When submitting your mortgage application, lenders will complete their own assessment of your financial situation. However, if after your application your income should change significantly, or you incur new debts, then your mortgage offer could be at risk.

For example, should you lose your job or switch to a lower-paying role, then lenders may want to reassess your new affordability.

Credit Report Changes

While lenders will complete a hard credit check upon the submission of your mortgage application, they will often carry out additional credit checks later on – sometimes just before completion. These final checks help lenders to ensure that your financial situation has not drastically changed since the initial assessment.

As such, any new debts, missed payments, or other negative information appearing on your credit report at this stage could impact their willingness to proceed. To best prepare for this, it is essential to monitor your credit health closely and avoid these actions that might lead to a lender withdrawing a mortgage offer.

Property Valuation Issues

Lenders almost always complete their own property valuation. Should the valuation of your planned property come back lower than expected, lenders may contact you to reduce the borrowing amount or withdraw their offer entirely.

A withdrawal in these scenarios is most common when a property has defects or is worth less significantly than the agreed purchase price.

Fraud and Misrepresentation

A lender will almost certainly withdraw a mortgage offer if that lender suspects any fraud or inaccurate information has been included in your application. It is crucial that you are honest and thorough when submitting any paperwork during the mortgage application and loan approval stages to avoid both delays and rejection.

Offer Expiration

Mortgage offers are only valid for a limited time – often three to six months. As such, if the property purchase isn’t completed within this timeframe, the offer will expire. Should your mortgage offer expire, you will need to reapply for a new mortgage.

Policy Changes

On rare occasions, lenders may change their lending criteria or policies during your application and offer process, often in response to shifting market conditions or economic factors. This can result in offers being withdrawn – even if your circumstances haven’t changed. As noted, however,  policy changes that directly affect the acceptance of your mortgage are particularly rare.

How Can I Stop My Mortgage Offer from Being Withdrawn?

To prevent your mortgage offer from being withdrawn, it’s important to maintain financial stability and to provide the most up-to-date documentation throughout the mortgage application process.

As we’ve touched on previously, avoiding changes in jobs, reducing any outstanding credit, and  responding promptly to lender requests, can all help mitigate the chances of your mortgage offer being withdrawn.

Here is how to stop your mortgage offer from being withdrawn:

Avoid Changing Jobs

One key factor lenders assess is employment stability, as it directly reflects your ability to keep up with your mortgage repayments. As such, if you are thinking, “can I change jobs after a mortgage offer?”, it’s best to be cautious.

Changing jobs, becoming self-employed, or even starting a new business will alter your financial status and lenders will likely delay or withdraw the mortgage offer.

Avoid New Credit Activity

Taking out any type of new credit or applying for additional loans during the mortgage process will affect your credit score and affordability assessment. It is best practice to avoid using credit cards and to focus on improving your overall credit score in the build up to submitting (and beyond) your mortgage application.

Lenders will often perform a credit check before mortgage completion, and so keeping your credit stable is crucial for maintaining your creditworthiness throughout the process.

Be Transparent and Proactive

In the event that your financial circumstances do change, it is always best to be upfront with your lender or mortgage broker. Keeping open communication will help avoid any surprises and allows lenders to adjust assessments if possible, speeding up the underwriting stage.

Importantly, lenders base their assessments on your financial situation, so withholding information or stretching beyond your means can put both your mortgage offer, and your financial future, at risk

Work With a Trusted Mortgage Broker

Working with an experienced mortgage broker can place an expert in your corner, helping you to navigate the entire mortgage process, from start-to-finish. An experienced mortgage broker will be able to spot any potential issues early on and manage lender relationships, paperwork, and any underwriting complexities.

At Boon Brokers, we offer fee-free, expert mortgage advice that is tailored to your needs. With whole-of-market access, our dedicated mortgage advisers can compare the latest mortgage products from a wide-range of lenders, matching you with the mortgage that aligns with your goals.

From affordability assessments to preparing documentation, our experts will guide you through every step of the process, so that your application stands the best possible chance of success.

What Should I Do If My Mortgage Offer Has Already Been Withdrawn?

If your mortgage offer has been withdrawn, it’s important to contact your lender or mortgage broker as soon as possible to identify the reason behind the withdrawal. Understanding the exact cause will help you determine the next best steps to resolve the issue and assess whether a new application if possible – either with the same lender or an alternative provider.

While the exact reason behind your mortgage offer being withdrawn will best guide your next steps, here are the 4 steps you need to take in order to get your mortgage application back on track:

1)   Ask for a Detailed Reason in Writing

Contact your lender, or if you’re working with a trusted mortgage broker – like Boon Brokers – contact your broker, and request a written explanation for why your mortgage offer was withdrawn.

Knowing the specific reason(s) for your mortgage withdrawal will help you identify which part(s) of your application or finances that need amending for your chosen lender.

2)   Contact Your Mortgage Broker or Adviser

A mortgage broker will be able to provide you tailored advice on your next steps and can negotiate with your chosen lender on your behalf.

An established mortgage broker will often have direct contacts with lenders and be familiar with the common issues that lead to offers being withdrawn. Their industry insight and experience can provide you with a clearer understanding of why your mortgage was withdrawn, allowing them to quickly identify problems, resolve them efficiently, and help get your mortgage plans back on track.

3)   Work on Resolving Any Issues

Once you know the reason for your mortgage offer withdrawals, it’s time to be proactive. Whether it’s clearing debts, updating paperwork, or providing specific evidence of income, it’s important to take the specific steps to resolve any problems quickly and maintain transparency with your lender.

4)   Explore Alternative Lenders

If your chosen lender withdraws a mortgage offer, it’s important to remember that you still have options. While high-street lenders often have stricter eligibility criteria, there are many specialist lenders who may take a more flexible approach, particularly if your circumstances fall outside the standard lending profile.

At Boon Brokers, our whole-of-market access will help you find and compare mortgage deals from a wide-spread panel of lenders. Our dedicated mortgage advisers will guide you through your options, comparing specialist lenders with popular high-street mortgage deals to find the solution that best aligns with your mortgage needs.

Can a Mortgage Broker Help If My Offer Is Withdrawn?

When a mortgage offer is withdrawn, it can feel overwhelming, stressful, and disheartening – but it’s not the end of your mortgage journey. You still have options.

At Boon Brokers, our dedicated advisers know how crucial it is to act quickly and effectively to protect your home purchase. Here’s how our experts mortgage advisers can help you:

Contact Boon Brokers today to speak with a dedicated adviser who will help you secure your mortgage offer and complete your home purchase with confidence.