You have found the right house and the listing says "under offer". That is not the end of it. Nothing is binding until contracts are exchanged, which means you may still have a route in, and it also means your own accepted offer is less secure than it feels.
Updated August 2026
Under offer means the seller has accepted an offer, usually verbally. In England and Wales that is not legally binding until contracts are exchanged, so the property is reserved rather than sold. You can still make an offer, and the agent must pass it on. What tends to decide it is not just price but whether your finance looks certain, which is where a mortgage in principle matters.
Legally, nothing. Sold STC means "sold subject to contract", and both describe the same position: a price has been agreed but nothing is binding until exchange.
Some agents switch a listing to Sold STC once a survey is booked or a mortgage offer has been issued, because it feels more settled. Others use "under offer" throughout. That is presentation rather than legal status. The phrase that matters is subject to contract: until solicitors exchange signed contracts, either side can walk away without penalty.
A meaningful share of agreed sales fall through before exchange. If you are the buyer who missed out, that is worth knowing. If you are the buyer whose offer was just accepted, it is worth knowing too, because the period before exchange is the part of the process where things are least certain and where getting your finance moving quickly does the most good.
Yes. Until contracts are exchanged, estate agents are legally obliged to pass every offer to the seller. But simply offering more is not always what wins it.
Sellers weigh certainty as well as price. An offer that is 5,000 higher but depends on selling a house that is not yet on the market can look worse than a slightly lower offer from someone who is chain-free with finance arranged. What makes an offer stand out:
Even if your offer is not accepted, ask the agent to keep you informed. Sales fall through often enough that being the obvious second choice is worth something.
Gazumping is when a seller accepts a higher offer after already accepting yours. It is legal in England and Wales, because nothing binds either party until exchange. Most explanations stop there. The more useful question is what it does to the finance you have already arranged.
| What you had in place | What happens if you lose the property |
|---|---|
| Mortgage in principle | Normally unaffected. It is based on you rather than the property, so it usually remains usable for a different purchase within its validity period. |
| Full mortgage application | Stops. The application is tied to a specific property and valuation, so a new purchase means a new application, though much of the paperwork can be reused. |
| Mortgage offer already issued | Lapses with the property. Offers are property-specific and cannot be transferred to a different house. |
| Valuation and survey fees | Generally not recoverable. This is usually the largest sunk cost, and the main financial risk of the pre-exchange period. |
| Legal fees incurred | Depends on your solicitor's terms. Some offer no-completion-no-fee arrangements; many charge for work already done. |
Because a mortgage in principle survives a collapsed purchase but a full application does not, there is a real argument for having the principle in place early and moving briskly to exchange once an offer is accepted. The longer the pre-exchange period runs, the more time there is for someone else to offer and for costs to build up on a purchase that may not complete.
It changes how the agent reads your offer. Without one, you are asking the seller to take your word for it that the money will be there.
A mortgage in principle means a lender has run an initial assessment and indicated what it would be prepared to lend, subject to full checks. It is not a guarantee and the full application still has to be assessed properly, but it moves your offer from speculative to credible. For a seller deciding between two similar offers, that difference does real work.
Our guide to mortgages in principle covers how long one lasts, whether it affects your credit file, and what a lender actually checks at that stage.
Getting a mortgage in principle in place is usually the fastest way to make your offer look serious. It takes a short conversation.
Initial consultation free. A broker fee of £299 is payable if you choose to proceed following a formal mortgage offer.
Conveyancing typically takes 8 to 12 weeks from acceptance to exchange. Your mortgage application runs alongside it, and finance delays are one of the more common reasons the timeline stretches.
The agent issues this confirming buyer, seller, solicitors and price. It is the formal starting point, not a contract.
Your broker submits the full application. The lender instructs a valuation and underwriting begins. Starting this promptly matters more than most buyers expect.
Your solicitor carries out local authority, environmental and drainage searches while any survey you have commissioned is carried out.
The lender confirms its formal offer. Until this point the finance is not settled, whatever the listing says.
The legal milestone. Once contracts are exchanged the sale is binding and gazumping is no longer possible.
Funds transfer and you get the keys. Exchange makes it official; completion makes it yours.
Scottish property law binds both parties much earlier, which largely removes the risk this whole page describes.
When a seller accepts an offer in Scotland, solicitors exchange formal letters known as missives. At the conclusion of missives the contract becomes legally binding, and from that point the seller cannot accept another offer. Gazumping is therefore far less common north of the border.
The practical consequence for a buyer is that finance needs to be further along earlier in the process, because you are committing sooner. If you are buying in Scotland, it is worth confirming your position with a lender before your solicitor concludes missives rather than after.
The government publishes general guidance on buying and selling a home covering the legal stages in more detail.
Reviews reflect individual client experiences and do not guarantee outcomes.
Whether you are chasing a property already under offer or trying to get your own purchase to exchange quickly, having the finance sorted first is what makes the difference. Call 01422 354011 or use the form below.
Initial consultation free. A broker fee of £299 is payable if you choose to proceed following a formal mortgage offer. We may also receive commission from lenders. Your home may be repossessed if you do not keep up repayments on your mortgage.
Get a Mortgage in PrincipleWoodhall Mortgages is authorised and regulated by the Financial Conduct Authority (FRN 762513). As a whole-of-market mortgage broker, we consider mortgages from across the market, subject to lender criteria and product availability. This page is provided for general information only and does not constitute regulated mortgage advice, nor is it legal advice on the conveyancing process. Property law differs between England and Wales, Scotland and Northern Ireland. A broker fee of £299 is payable if you choose to proceed following a formal mortgage offer.
Woodhall Mortgages, Croft Myl, West Parade, Halifax, West Yorkshire, HX1 2EQ. Phone: 01422 354011. Last reviewed: August 2026.
Buying a home or reviewing your mortgage can feel complicated, but it doesn’t have to be. A quick conversation can give you clarity on your options, your budget, and the next realistic steps. There is no obligation and no pressure, just straightforward guidance tailored to you. Complete the short form below and we will be in touch to help you move forward with confidence.
