Mortgage offer expired, advice please

metters2009

Hi

I recently bought a new build house and since exchanging contracts my mortgage offer has now expired as the house is not complete. I have now been told that i have to go through the whole mortgage application process again with the same lender paying all the fees again for the same product. Are they right to be doing this?

Cannon_Fodder

The Lender is right. It is pretty standard. Although I suppose if you have decent credit history, income, deposit etc, you might threaten to take your business elsewhere to a better deal, unless they waive the fee, or somesuch. Depending what deal you signed up to, it might have been replaced with something a little better, even.

Alternatively, the lender may now find an excuse to down-value, in the developers opinion, the property and give you a worse deal.

What completion date was specified at exchange?
What penalties apply for the developer failing to meet that deadline?
What did your solicitor say prior to exchange about the way things could pan out?

Tell your developer to pay the fee, if you cannot avoid it. Tell your developer they will pay any shortfall, should it be down-valued.

Pray you don't get sued for inability to complete/fund the deal.

sgh1976

Did you (or if you used a FA) think about asking for extension or even changing the product?

My mortgage offer was set to expire on the 31st Jan. House will not be finished until Feb/March. FA got onto Halifax, changed the product (slightly better rate) and the offer expires 31st July. No extra fee's or having to go through the whole process again.

If your credit state is in the same as when you applied then you should be ok, just a shame you have to pay out again.

Dan_1976

The solicitor should not allow you to exchange without the ability to complete. I assume the building was to be complete before the date of the end of your offer.

I would put pressure on the developer as Cannon Fodder says. Talk to your solicitors and ask if the contracts have anything in to help you.