Can we get a mortgage now ?

brumi_2

Hi
My partner and I bought a house today It's a new build and won't be ready until October/November. This might be a silly question but as we're going to finalise missives within the next fortnight, can we get a mortgage now and put it in a high interest account and start repayments now and then pay for the house in Oct/Nov ?

Thanks

mdf14

I'd be surprised if the bank let you do that...they are lending you the money on the condition you have the house as collateral, I'm pretty sure they'll only transfer the money for the actual purchase of the house.

maninthestreet

The mortage lender will not release the money until the day of mortgage completion, and then you never actually get to see the money - it all goes through solicitors accounts and then on to the vendor (the builder, in your case).

herbiesjp

brumi wrote: »

Hi
My partner and I bought a house today It's a new build and won't be ready until October/November. This might be a silly question but as we're going to finalise missives within the next fortnight, can we get a mortgage now and put it in a high interest account and start repayments now and then pay for the house in Oct/Nov ?

Thanks

Some companies will have mortgage offer letters valid for 12 months for new builds - i.e. Nationwide

However a solicitor will not draw down the funds for you until the property is complete and everthing finalised.

HTH

JoeK_3

A quick answer is, no. The mortgage is secured on the property which is not yet there and the money will be paid to the vendor or the builder.

JoeK