12 month offers adding real value during uncertain times

12-month mortgage offers, as provided by the likes of the Skipton, are exactly what the market needs at a time of such extreme economic uncertainty. They empower borrowers to lock in an interest rate for purchase or remortgage that will be valid for up to as long as 12 months. This provides all-important certainty when certainty is in short supply. It also enables us, as brokers, to then monitor the market and adapt the advice if need be before completion. I love it when lenders show some creativity not just to help clients but to support the broker community as well. Chapeau to the Skipton.

The 12 month mortgage offer is a really positive development in the mortgage market as one of the great unknowns when people, especially first-time buyers, are buying a new build property is whether completion will take place on time. It can be really distressing having the completion date be moved time and again and so having the security of a 12 month offer from a lender is a real bonus that will provide borrowers with extra peace of mind.

One year offerings like this will mean that some of the new developments that are being built, and are forecast to take up to a year to be ready, can now have that original mortgage offer in place for a speedy completion. Given that many properties that are being developed often go under offer within a day or two of a shovel breaking ground, these kinds of products are good news for buyers and should be applauded.

Skipton have offered flexible solutions for a long time now and they have been a great help to borrowers. A 12-month offer provides borrowers with much needed reassurance. In relation to new builds, NatWest also provides borrowers an initial offer of six months with two further extensions of three months and they can keep the same rate for that duration. Halifax also have a whole new build range where the rate is valid as long as completion takes place by 31st December 2023. What this highlights is the importance to seek expert advice when buying a new build, as often they are sold six months in advance and regularly experience delays along the build schedule, leading to many mortgage offers expiring.

This is good news from the Skipton. NatWest will also extend an offer on new builds up to 12 months. I’ve only recently had a case where we’ve used the full flexibility of a whole year mortgage offer. I have been particularly impressed with NatWest.