Nationwide Mortgage & New Build

caeler

Hi all

I've received my Nationwide Mortgage offer and thought all was going well until I found out that my conveyancer has to inform Nationwide about any builder incentives and get their approval before we can proceed.

I'm not expecting any issues over some lawn and carpets although I am part-exchanging which does have to be declared. How long does it take for Nationwide to approve the new build incentive form? It was submitted on 27 November and it has been chased several times.

Here's the form for those unaware: http://www.cml.org.uk/cml/handbook/form

Thanks in advance.

Brazuca

It was submitted only on Tuesday and already been chased several times? LOL, and I thought I was impatient!

caeler

The only reason I am impatient is because I'm annoyed to find out they waited until 2 days before I was due to exchange to submit it! They are chasing because they realise it is now going to delay everything due to their mess up. Certainly not Nationwide's fault, but I am still keen to understand in others experiences how long it generally takes.

littlesparkles

I am buying a new build and my mortgage is also with Nationwide. I knew that I had to declare all incentives to the mortgage lender but they asked me these questions during the application process anyway. The builder didn't submit the form until after the mortgage had been approved but this didn't cause any problems.

Google nationwide intermediaries and you will find info used by brokers relating to nationwide mortgages. There is some info on there about which incentives are acceptable.

caeler

Thanks Littlesparkles. I think I'll give Nationwide a call myself in the morning to put my mind at rest. As I said I'm not worried about a bit of lawn and carpets and I've been offered market value for my house in part-exchange, more so, how long it will take for them to consider and approve as I am desperate to exchange!

littlesparkles

My application was really quick. The formal mortgage offer was issued within 10 days from what I remember. And because the incentives I was given were acceptable to Nationwide, there wasn't any re-assessment of the application after this. Well I hope not seeing as I'm due to complete in the very near future! I wasn't part exchange though so I'm not sure what the Nationwide view is on this I'm afraid. Was it just part ex plus turf and carpets?

TastyTeeth

You'll be fine with turf and carpets. They are pretty standard as extras.

Nationwide will start getting funny if you've had additional help towards your deposit from the builder or they've given you stacks of free extras that are not standard spec for the house type you're buying (eg. fully integrated appliances, completely tiled floors in kitchen and wet areas, fitted wardrobes and so on).

littlesparkles

Nationwide were fine with 5% deposit contribution from the builder for me. This was with my own 15% deposit.

caeler

TastyTeeth wrote: »

You'll be fine with turf and carpets. They are pretty standard as extras.

Nationwide will start getting funny if you've had additional help towards your deposit from the builder or they've given you stacks of free extras that are not standard spec for the house type you're buying (eg. fully integrated appliances, completely tiled floors in kitchen and wet areas, fitted wardrobes and so on).

They tried to give me more extras but I preferred a cash discount on the selling price. The whole deposit is my own so I think I'm fine.

Just want them to come back with the thumbs up on Monday so we can exchange!! I'm sitting in my living surrounded by boxes feeling the strain!

littlesparkles

Fingers crossed for you! Is the house finished? Mine was just finished last week so I'm in the two week notice period before completion now. The builder is paying for a full packing and removal service so I haven't really packed much myself!

caeler

littlesparkles wrote: »

Fingers crossed for you! Is the house finished? Mine was just finished last week so I'm in the two week notice period before completion now. The builder is paying for a full packing and removal service so I haven't really packed much myself!

The house was finished months ago so it is more of a traditional purchase with a fixed completion date on exchange (if exchange ever happens!). Good luck with your move, I am still hoping to complete on 14 December which is why I thought I'd take the opportunity to get on with the packing!