Mortgage committment letter for new build ?

boltonus

All,

Rightly or wrongly my wife and I have decided to invest in a new build. 10% of the property price goes down and then the rest on completion.

Completion is not for 3 yrs yet the solicitor we have handling the contracts says that she needs proof of committment from a lender.

In all reality we probably will sell on before completion and I have explained this to her but my question is will a bank/building society offer a letter of committment for a completion that is 3 years away ? and does anyone know the costs involved ? can anyone reccommend a lender to go to ? I think the solicitor is just looking for paperwork to cover her back - has anyone any experience of this ?

Cheers for your help

Chris

MortgageMamma

I think what your solicitor is asking for is a mortgage promise. This involves a lender credit checking you and assessing your financial details and confirming they will lend xxxx amount to you. I think 3 years is a hell of along time until completion! Anything could happen in that time, you could lose your job, become ill, die, or we could all be wiped out by terrorists. Are you sure its worth shelling out now for something that will be ready in three years time? Could you not secure a property further down the line when the building work has at least begun? Planning permission for a sewerage could be granted right next to your plot for all you know in that time!

Ian_W

And you forgot to mention Bird Flu Mamma!! :rotfl::eek:

MortgageMamma

Oh yes bird flu as well. make sure there's no planning for duck ponds near you new build. Ian will you stop your devil gyrating please - its most distracting!

herbiesjp

Don't forget a mortgage promise will not last 3 years - quack! :rotfl:

nadnad

why on earth will the property not be ready for 3 years? :eek: that seems a hell of a long time.
a friend was buying a new build and she had to prove to her solicitor that she could get the money - basically a mortgage promise as well - but then her property was going to be ready in 6 months - I don't know how this is going to work for 3 years!

Ian_W

Ian will you stop your devil gyrating please - its most distracting!

Love it when ya talk dirty, Mamma.
Me girating devil is me most endearing featcha!!

Roy5085

I think my point here has been justfied Ian.

http://forums.moneysavingexpert.com/showthread.html?t=190895&page=5

nadnad

Roy5085 - may I ask what your agenda is I've been scanning your posts along with EmmaHarris - (who sems to work with you?) the two of you seem to have some agenda which is larger than the topics of the posts you reply to. Your replies seem to get very involved - something just rings very strange about them - what company do you work and what exactly is your agenda??

MortgageMamma

Ian_W wrote:

Love it when ya talk dirty, Mamma.
Me girating devil is me most endearing featcha!!

Said is true cockney Ian. I'm sure you have more on offer than a gyrating devil! I need to find myself an AVATAR!

emmaHarris_2

nadnad I think everything has been said now on that subject.