Porting a mortgage

scw1

More questions hope you dont mind. We havent been successful in speaking to Halifax today or yesterday.

I just want some clarification really. We were going to port our mortgage from our current home to a new home. But it looks more and more likely that we wont be able to buy this home and instead are opting for a new build. After speaking to Persimmon who are building the home, they want us to exchange and complete in 8 weeks although the house wont be finished until Nov (definitely confirmed it with them as completition in 8 weeks and then sit back and wait!). Now I am assuming because we dont actually have a home we wont be able to port the mortgage and will have to repay and pay early redemption costs and then take out a new mortgage or is this not correct?

Thanks

TEDDYRUKSPIN

Persimmon are monkeys. They jump up and down and need the full money in order to build the next.

Now company will complete and transfer the mortgage to them in 8 weeks if the house is not built. Sorry. But it basically means it is a piece of land.

Persimmon know this and should not be stupid.

Simply put it. The mortgage application can be fully carried out by Halifax but they will not transfer the money to them until the final nod. The solicitor will even advise you not to do this until completion.

Basically, what if they went bankrupt before full completion of the house build? Would a company be so stupid to transfer full mortgage monies to them and on a half built house?

Be LOUD!!! I did this when I brought my new build a while back. Brought it with Barratts. Pew..... Rubbish too. I was mean't to complete in 6 weeks but delayed and delayed the whole process. Could'nt care until the whole house was built correctly and the snags fixed. Worked for me.

scw1

Thanks for your reply. Thats very helpful.

I am having a dim moment so please bear with me. I have to pay £500 to secure the plot and then another 5% in a month and they want the rest on completion (so the 8 week mark) do you mean do not pay the rest until the house is completed?

If so, this would mean I wouldnt need to reapply for a mortgage until closer to the date the works will be finished? Yes?

NOVASTAR

Scw1 - I ported my mortgage 3 months after I had moved out of my flat.
I guess it depends on who the mortgage lenders are, but mine (Nationwide) kept the facility open to me for up to 6 months.
I had to pay them the ERF but it was paid back to me in full once I took up the mortgage again.
Hope this helps.

happybroker

scw1 wrote: »

Thanks for your reply. Thats very helpful.

I am having a dim moment so please bear with me. I have to pay £500 to secure the plot and then another 5% in a month and they want the rest on completion (so the 8 week mark) do you mean do not pay the rest until the house is completed?

If so, this would mean I wouldnt need to reapply for a mortgage until closer to the date the works will be finished? Yes?

I can't see that Halifax will release the money for the mortgage until the property is up and finished which would need to be confirmed by the surveyor.
Unless you have the cash to complete without a mortgage I don't see how you are going to be able to do it and also you would be paying the full asking price for a plot with no building on which is a no brainer.......some one surely must have their wires crossed here.

TEDDYRUKSPIN

SCW1. Most mortgage companies will hold a successful mortgage application for 6 months upon payment of the upfront fees (booking fee, survey fee, arrangment fee).

Don't panic. Be forward with persimmon. Tell them that you mortgage application has gone through splendily. Tell them that stop being a 'a$$' and that you know that no mortgage company will pass the full monies to you until the whole house is built. Otherwise it will be just a plot of land!

The solicitor will back you up on this too. They will use the indemnity insurance rule too. Solicitor will recommend you take this out just in case everything backfires if you go through the route of completing without the house built!!!!

PS. Just remember if the mortgage is actually drawndown before the house is built you will be paying the interest from day one!! Your monthly mortgage payments will be starting!! Arghhh...

Do you get my point?