Shortage of bricks delaying build offer expiry date at risk

Justin1970 · 17 January 2014 at 10:41PM

I am buying a new build through Bellway

Initially the reservation paperwork had a estimated completion date of June this year

I was told I needed to exchange contracts in 28 days, this was somewhat delayed over Xmas though

However I needed to get the mortgage offer sorted before exchange of contracts could take place, this I have sorted and the offer with Nationwide has an expiry date of 9th July.

I am now told that due to a shortage of bricks of all things completion is not going to be until July and after offer expiry. Bellway insist I can get a 2 week extension on offer but who is to say it will not get put back again? I wanted a good gap between completion and expiry ensure the mortgage is not put at risk.

I am concerned about the mortgage offer expiring, I paid a fee to secure a good 4 year fixed rate deal. What can I do? I don't want to pull out but feel really annoyed that Bellway are doing this to me at the last minute and do not want to exchange with the risk the mortgage offer expiring.

Beginning to panic now, please help.

ethank · 18 January 2014 at 12:07AM

If the builder delays and you have to pay for a fresh mortgage application, you can ask them to pay.

I also would not exchange until at least Feb, they really should not advise you to, but all developers want the house exchanged ASAP, as at that point you cannot change your mind.

Justin1970 · 18 January 2014 at 1:10AM

So best option is to delay exchange of contracts, if possible, and reapply for the mortgage just before exchanging and cancel the original offer and hope the second mortgage application goes through without any problems.

I'll put this solution to the developers, as I feel very uncomfortable with not being covered by a offer during completion period.