Nationwide mortgage offer and builder's incentives

littlesparkles

I have a mortgage offer from Nationwide and it all went through very quickly and smoothly.

I disclosed all of the builder's incentives (new build purchase) during the application. 5% deposit, stamp duty, legal fees, removals, estate agent fees.

This was in branch and I have no copy of the application. The offer letter makes no mention of the incentives.

I'm worrying after reading another post about Nationwide reprocessing an application due to a gifted deposit.

Is this all okay though? Please tell me I'm worrying for no reason!

harvey115

Incentives does not have to be mentioned in the offer letter.

Incentives can be mentioned on the Survey Copy (lender valuation on the new build) or on the CML.

Hope this helps

littlesparkles

I have a copy of the valuation and there is nothing on that.

What is the CML? Is that the form the builder has to complete? If so then yes these incentives are on there as far as I'm aware but I haven't seen a copy.

harvey115

The valuation should have listed all the incentives even the extras i.e. flooring, stamp duty etc if anything is given by the developer.

Which company did the survey?
Was this survey instructed by the lender (valuation)?

I am surprised it isn't mentioned.

However The offer letter does not have these mentioned, so that should be fine.

CML = Certificate of Mortgage Lenders

CML is usually published when the house is mortgage-able i.e. has the majority of things done and developers usually send this on 10 working days completion notice or something similar.

littlesparkles

It was Nationwide's valuation that was done. I might contact them to make sure. We have a while to completion so there is time to sort it.

Windlepoons

You are worrying about the exact same things I was worrying about.

The CML Website has the following.
5) Who needs to receive the form?

[FONT=Arial,Arial][FONT=Arial,Arial]The form is intended to improve the flow of information to the key parties involved in the transaction. Therefore, it must be provided to [/FONT][/FONT][FONT=Arial,Arial][FONT=Arial,Arial]the lender’s solicitor/conveyancer [/FONT][/FONT][FONT=Arial,Arial][FONT=Arial,Arial]as a standard part of the process, and to the [/FONT][/FONT][FONT=Arial,Arial][FONT=Arial,Arial]valuer when requested[/FONT][/FONT][FONT=Arial,Arial][FONT=Arial,Arial]. [/FONT][/FONT]

[FONT=Arial,Arial][FONT=Arial,Arial]As noted above, the developer/seller is required to start the process by downloading the form and completing it. [/FONT][/FONT]

[FONT=Arial,Arial][FONT=Arial,Arial]The valuer will request the form from the developer/seller early in the sales process.[/FONT][/FONT]


I asked my Broker if he definatly declared incentives he said yes, then I asked the builder if they definatly told the surveyor about the incentives and they said yes as they were legally obliged to.

Today I dropped the signed contracts and mortgage deed off to the solicitor, he told me that exchange will take place as soon as nationwide confirm they are happy with the 5% builders incentive.

2 hours later he phoned to say Nationwide had confirmed, and exchange took place.

So thats 3 Seperate people who have now told Nationwide that there is a builders incentive and they have said ok to all 3... It wont stop me worrying until completion though.

harvey115

The worry only ends once the whole deal completes, although on every stage the lender says all good and all that.

I am also completing next week Friday, and have already exchanged with my 10% as deposit. So I am also a bit worried but on the same time trying to not worry as the lender has confirmed at the time of exchange they are happy for the exchange to take place.

Best of luck to all, including me