Pulling our hair out

Tjrw1985

Hoping someone can help me here.

Our mortgage broker is starting to annoy us a little bit and the fact that he is going to charge us for using him at the moment takes the mick.

We reserved a property back in March, new build on shared ownership. And our exchange date is June. Despite sending all the requested documents to the broker over 2 weeks ago, he still hasn't applied for the mortgage or requested payment from us.

After chasing last week, he advised he would pencil in for this week to do the app, but heard nothing from him, so we e-mailed him yesterday. Still no response.

He hasn't asked us to appoint any solicitors or anything yet, and we know our developer wants us to have the mortgage in place for exchange.

Has he got enough time to do this? The lender he is using is Newbury.

ACG

Have you signed anything? If he hasnt done anything you might be able to walk away without it costing you?

You dont say when in June, but in theory you can have a Mortgage offer in place within a week - but i have one on my desk i have been working on for about 4-5 weeks.

So in theory there is enough time, in practice it depends on the lender your broker and your situation.

Tjrw1985

Clean credit, no defaults or missed payments ever. Affordability is fine, according to the broker. Exchange is within the next 4 weeks.

kingstreet

When is the property due to be finished?

If the build won't finish within three months, he may be holding off in case the valuation goes stale before the build is finished. This is a problem with Leeds BS, the main shared ownership lender.

How long do Newbury valuations last?

Tjrw1985

Newbury last for 3 months. I checked this with them directly.

Completion is due for the 23rd August, this has been moved back from 16th.

kingstreet

So, you may not wish to apply just yet and your broker is therefore protecting you?

Thrugelmir

Tjrw1985 wrote: »

Newbury last for 3 months. I checked this with them directly.

Completion is due for the 23rd August, this has been moved back from 16th.

Then your solicitor may well advise against exchanging contracts. If there's a danger that the offer will lapse before the property is ready.

Tjrw1985

I'm confused.

If the mortgage was offered today (for example) it would expire on the 30th August.

As it is shared ownership and after speaking to Newbury myself, they will allow extensions by 1 month at a time.

So the mortgage would be valid.

kingstreet

Tjrw1985 wrote: »

I'm confused.

If the mortgage was offered today (for example) it would expire on the 30th August.

As it is shared ownership and after speaking to Newbury myself, they will allow extensions by 1 month at a time.

So the mortgage would be valid.

If it was my case, I'd be trying to get as long as possible on that offer and not pushing potentially to the last day. If completion is delayed, the lender may allow an extention, but that is at lender discretion. Will they want a new valuation? Will you have to pay for it?

Our Housing Association contact will only release us to submit an application when they are sure the build will be finished within that three month window.

TBH we're only speculating here and if you want to find out the reason why the application is being delayed, this isn't the place you're going to get a definitive answer. Sorry.

ACG

kingstreet wrote: »

If it was my case, I'd be trying to get as long as possible on that offer and not pushing potentially to the last day. If completion is delayed, the lender may allow an extention, but that is at lender discretion. Will they want a new valuation? Will you have to pay for it?

Our Housing Association contact will only release us to submit an application when they are sure the build will be finished within that three month window.

TBH we're only speculating here and if you want to find out the reason why the application is being delayed, this isn't the place you're going to get a definitive answer. Sorry.

Kingstreet raises a good point. New builds are not something i really do and i have never done a Mortgage on a property that hasnt been built yet but i think holding out for as long as possible isnt a bad idea - however you really shouldnt have to be coming on here to check that, this is something your broker should be telling you. Part of the point in a broker is to take some of the stress away, not add to it.

kingstreet

Quite. We do loads on a Crest development in Milton Keynes and we had to save up a load of apps until second week in April so we could be certain the properties would be ready before the offers expired after six months.

We did however inform the clients what we were doing and why and they were all grateful for the level of consideration we gave to their interests.