Rates are rising. Can my buyer's mortgage offer be pulled?
Published 17 September 2026 · 7 min read · By Evren Ergin
A lender raising its rates does not cancel a mortgage offer it has already issued: the rate written into your buyer's offer stays as it is for as long as the offer is valid. The sales that feel the repricing are the ones where the buyer has not yet applied, so the question that matters is how far through the mortgage process your buyer actually is.
TL;DR
- •A formal mortgage offer is withdrawn for a material change, such as your buyer's circumstances, inaccurate information, the property or the legal title, not because the lender repriced its new deals.
- •Moneyfacts put the average two-year fix at 5.73% on 15 September 2026, up from 4.84% on 1 March, after NatWest, Santander, HSBC, Lloyds, TSB and Nationwide repriced for a second time this month.
- •A buyer holding only a mortgage in principle has no rate protected, so a rise can shrink what they can borrow before they ever apply.
- •Ask one question this week: has your buyer's lender issued the formal offer yet, and on what date does it expire?
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If you have agreed a sale and the news is full of lenders putting rates up, it is normal to wonder whether your buyer's mortgage is about to disappear. For most sellers with a buyer who already holds an offer, it is not.
A mortgage offer is the formal document in which a lender commits to lend a set amount, at a set rate, against your property. It is issued after the lender has checked your buyer's income, credit and the valuation of your home. Once issued, the terms inside it do not move when the lender changes the prices of the deals it offers new customers.
Why are lenders raising mortgage rates in September 2026?
Lenders price fixed-rate mortgages off swap rates, the wholesale cost of borrowing money at a fixed rate for a set term. Moneyfacts reported on 15 September 2026 that swap rates had climbed above 4.70%, and the largest lenders repriced for the second time since the start of the month. Bank Rate itself has stayed at 3.75% since the Bank of England's decision on 30 July 2026.
Average fixed mortgage rates, March vs September 2026 (Moneyfacts)
| Measure | 1 March 2026 | 15 September 2026 | Change |
|---|---|---|---|
| Average two-year fix | 4.84% | 5.73% | +0.89 points |
| Average five-year fix | 4.96% | 5.78% | +0.82 points |
| Monthly cost of £250,000 over 25 years on the average two-year fix | About £1,438 | About £1,570 | About +£131 |
Can a lender withdraw a mortgage offer once it is issued?
Yes, but only on the conditions written into the offer, and a change in the lender's pricing is not one of them. SAM Conveyancing's guidance, published on 10 August 2026, lists the usual grounds: a material change in the borrower's circumstances, false or incomplete information in the application, a problem with the property or its valuation, a defect in the legal title, or the offer expiring.
Lenders also run final checks shortly before they release the money, including a credit search. A buyer who takes on new credit between offer and completion is a bigger risk to your sale than any rate headline.
How much danger is my sale in? It depends on your buyer's stage
What a lender repricing means at each stage of your buyer's mortgage
| Where your buyer is | Is their rate protected? | What a rate rise can do |
|---|---|---|
| Mortgage in principle only | No | The lender can lend less or charge more when the full application goes in. This is where renegotiations start. |
| Full application submitted | Usually, if submitted before the product was withdrawn | Lenders normally honour applications already in the system, but the buyer's broker should confirm it in writing. |
| Formal offer issued | Yes, for the life of the offer | Little direct effect. Watch the expiry date and your buyer's circumstances instead. |
| Contracts exchanged | Yes, and the buyer is legally bound | If the buyer cannot complete, they risk losing their deposit and facing a claim for your losses. |
What's normal and what's a red flag right now?
| Normal in a repricing month | Worth acting on |
|---|---|
| Your buyer's broker says their product was withdrawn but the application was already in | Your buyer has not applied yet, weeks after the sale was agreed |
| The lender's valuation or underwriting takes a little longer than usual | Your buyer mentions a new job, a new car loan or a change in income |
| Your buyer asks the agent how the rate news affects them | Your buyer asks for money off and cannot say what their lender has actually changed |
| The offer arrives with an expiry date several months away | The offer expires before any realistic completion date |
Timing matters here. Rightmove reported on 31 July 2026 that the average move now takes 154 days from sale agreed to completion. Most high street mortgage offers last six months, according to MoneyHelper, so an offer issued late in a slow chain can run short.
What should I do if lenders reprice during my sale?
1. Find out your buyer's stage
Ask your estate agent to confirm, in writing, whether your buyer has a mortgage in principle, a submitted application or a formal offer.
2. Get the offer date and expiry date
If an offer has been issued, ask for the date it was issued and the date it expires, so you can compare it with a realistic completion date.
3. Push for the application if it is not in
A buyer who has not applied is exposed to every repricing, so ask the agent to agree a date by which the full application will be submitted.
4. Hold your own large spending
Keep irreversible costs, such as coming fully off the market or paying for a leasehold management pack, until your buyer's lender has issued the offer.
5. Keep your solicitor moving
Answer enquiries quickly and have your paperwork ready, because the shorter the gap between offer and exchange, the less time there is for anything to change.
6. Treat a price request as a question, not a verdict
If your buyer asks for a reduction, ask what their lender changed and when; a buyer with an offer already issued has had no change to their rate.
7. Aim to exchange while the offer is live
Exchange makes the sale legally binding on both sides, which is the strongest protection a seller has against a late wobble.
Judge your buyer by what their lender has put in writing, not by what the headlines say rates are doing.
How do I keep control of my sale when rates are rising?
Read your buyer's commitment by what they have spent and what their lender has issued. A solicitor instructed, searches ordered and a formal offer in hand is a buyer who is committed. A mortgage in principle is a starting point, not a promise.
Move in step with your buyer rather than ahead of them. Your own solicitor can be instructed early at little cost; the bigger decisions wait for the offer.
It also helps to know your home's value on its own evidence, so a renegotiation is a conversation you can hold with confidence. ValuQ gives UK homeowners free, side-by-side property valuations from competing local estate agents, so the decision on price stays yours.
Will my buyer's mortgage rate go up if their lender reprices after the offer?
No. The rate in a formal mortgage offer is fixed for the life of that offer. A lender's repricing applies to new applications and new offers, not to offers it has already issued.
Can a mortgage offer be withdrawn after exchange of contracts?
It is possible but rare, and it happens for the same reasons as before exchange, such as a change in the buyer's circumstances or inaccurate information. After exchange the buyer is still bound to complete, and if they cannot, they risk losing their deposit and paying your losses.
How long does a mortgage offer last?
Most high street offers are valid for six months from the date of issue, according to MoneyHelper. Some lenders issue shorter offers, and extensions are at the lender's discretion.
My buyer only has a mortgage in principle. Should I worry?
Not necessarily, but a mortgage in principle holds no rate and is not a lending decision. In a month when lenders are repricing, agree a date for the full application to go in and keep your own big commitments on hold until the offer arrives.
Should I accept a lower price because rates have risen?
Not automatically. First find out what has actually changed for your buyer. If their offer is already issued, their rate has not moved; if it has not, ask to see what the lender is now offering before you discuss price.
Sources
- [1]IFA Magazine, Second wave of mortgage rate hikes begins before BBR decision (Moneyfacts) · 2026-09-15 · https://ifamagazine.com/second-wave-of-mortgage-rate-hikes/
- [2]Property Industry Eye, Mortgage rates surge again as major lenders reprice · 2026-09-16 · https://propertyindustryeye.com/mortgage-rates-surge-again-as-major-lenders-reprice/
- [3]SAM Conveyancing, Can a mortgage offer be withdrawn after exchange of contracts? · 2026-08-10 · https://www.samconveyancing.co.uk/news/mortgage/mortgage-offer-withdrawn-after-exchange
- [4]Bank of England, Bank Rate held at 3.75% · 2026-07-30 · https://www.bankofengland.co.uk/monetary-policy/the-interest-rate-bank-rate
- [5]Property Industry Eye, Estate agents face longest wait on record to get paid (Rightmove) · 2026-07-31 · https://propertyindustryeye.com/estate-agents-face-longest-wait-on-record-to-get-paid/
- [6]MoneyHelper, How long do mortgage offers last? · 2026-01-01 · https://www.moneyhelper.org.uk/en/blog/buy-or-rent-a-home/how-long-do-mortgage-offers-last
Terms in this article
Plain-English definitions from the ValuQ property glossary.
Agreement in principle (AIP)
An agreement in principle is a lender's conditional indication of how much it would lend you, based on basic details and a credit check.
Exchange of contracts
Exchange of contracts is the moment a sale becomes legally binding, when the two signed contracts are formally swapped and the deposit is paid.
Completion date
The completion date is the contractual day the sale must complete, fixed at exchange and binding on both sides.
LPE1 management pack
The LPE1 is the standard information pack about a leasehold property's charges, works, disputes and insurance, completed by the freeholder or managing agent for a sale.
Mortgage offer
A mortgage offer is the lender's formal, binding commitment to lend, issued after full underwriting and valuation.
Renegotiation
Renegotiation is reopening the agreed price after the survey or searches reveal something the offer did not account for.
Underwriting
Underwriting is the lender's full assessment of an application: income, credit, deposit source and the property itself.
Sale agreed
Sale agreed means an offer has been accepted and the property is coming off active marketing while lawyers take over.
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