Mortgage on New build - Help to Buy

supernothing

Hello,

My friends are looking to reserve a plot on a new build which will be ready to move in neXt December. They are selling their current home with help from Taylor Wimpey using the easy mover option, so basically looking to pay up their own mortgage and move out of property between April-June.

They have been told the Help to buy application can be put in 9 months before completion but are a bit unsure on the mortgage application. They have tried to speak to the IFA but he's busy completing applications for people moving in this December so 12 months into the future it's a priority for them at the moment.

The mortgage they have been advised us best for them is with Halifax, so basically does anyone know what the process is or been on the same situation?

Any advice is welcome as we don't know anyone else doing this scheme that can help them

kingstreet

December 2014?

The HTB ATP and the mortgage offer will be well out of date by then. I'm surprised any advisor is going along with this.

We'd tell our builders to get real.

This reservation should not be accepted until around May/June 2014 to ensure ATP and offer remain valid during the build period.

supernothing

Thanks,

The new build is at footings stage so TW expect it to be ready by September but plan of works shows December so didn't want to tell them earlier in case of delays, which for once I think is quite sensible.

How long does the ATP last for?

Say they sell there own home and move out by April they can live with family/ friends so being homeless isn't a deal.

kingstreet

ATP you have three months to exchange and six months to complete.

Of current HTB lenders, Nationwide offers last six months, but only allow a two week extention. Current Halifax products have to be drawn-down by 31/08/2014 and are the longest-dated offers I can recall.

supernothing

So it's more the mortgage then the ATB they have to worry about.

kingstreet

We recently had a case where the offer and the ATP expired because the build was not finished in time. We deliberately left the case until well within the six months because we don't want the client to have the stress of a new mortgage application, fees etc and TBH we don't want to do the same job twice as we only get paid once.

In March, when it started with the reservation, we were told the property would be finished in "Autumn 2013" so we waited until 23 April before we submitted the application.

Due to our usual efficiency, the case was offered on 30 April, with an expiry date of 27 October. The builder told us there would be no problem as the build would be finalised before then. We also knew we had the two weeks grace, taking us to 10 November.

In October, we were told the build wouldn't be finished until the end of November, so we had no choice but to do a new application. The builder has paid the fees, but the client has had to get updated docs together so we could get the new case offered. A new ATP had to be issued by the HCA HomeBuy Agent.

Fortunately, this does not happen often.

supernothing

I can imagine it's just as frustrating for you as it is for the buyer.

My parents bought a TW 10 years ago they got told a September completion and it ended up being 19th December, luckily they had buyers on our family home that understood and where happy to wait.

My worry for my friends is that they won't end up with a good mortgage deal they have to wait so Long between selling up and actually being able to put in the mortgage application