New Build FTB - Mortgage expire date very close to completion date

wasted_legend

A bit of friendly advice please,

Long story short - My partner and I have bought a new build off plan. We had been advised around the time of exchange that there have been delays so the new completion date is 2 days before the mortgage offer remains valid till (end of August)

Have spoken briefly to MA about this and we have been told we would not be able to extend on our mortgage offer and most likely would have to reapply if the completion date happens after the mortgage has expired. Obviously we do not want to reapply for a mortgage if we don't have to because interest rates on similar mortgages have already risen.

Anyone have any useful suggestions as to best course of action. Is is possible to extend a mortgage offer (by a few weeks if necessary) or whether it may be possible to take the mortgage before the house may be fully completed to avoid additional costs?

you advice appreciated

kingstreet

Which lender is it?

They are all different.

wasted_legend

Probably should have mentioned that, Halifax - with Help to Buy also

kingstreet

Halifax offers don't have a fixed expiry date.

The product has a drawdown deadline.

As that approaches, you can change products to one with a date further in the future. The rate will reflect the current products, not historic ones.

The valuation is usually subject to an internal "refresh" by Colleys, but no new application is needed.

if you want to avoid this, suggest you tell your builder.

wasted_legend

Thanks,

We have stressed many times with the builders where my concerns are relating to this. Apparently now "management are in contact with senior contractors to get latest estimated dates" - I remain skeptical and the words "Don't worry" don't really provide much reassurance in my book. I guess these things are set to try us.

So does that mean worst case scenario then we would have to transfer to a new product and take the hit on higher interest rates?

Thanks

kingstreet

That could be an accurate interpretation of what I said, yes.

It would depend on the interest rate of your current product and the one which replaces it.

Raggie

When you say "completion" do you mean build completion or sale completion..


I ask as if its the former.. build complete.. then you may need a revisit by the surveyor (we did) to confirm the house/property is habitable, and then a "completion certificate" for the house issued and passed to the mortgage company.. that in our case took 5 working days..


if its the latter then then best of luck..


Rags

kingstreet

Halifax doesn't require a reinspection.

It's happy to accept the NHBC cover note, AFAIK.

Monday123

Have you got a long stop date on your contract, allowing you to pull out in case completion doesn't take place before your mortgage offer expires?

wasted_legend

I don't really know about stop dates etc, Our contract exchange letter from our solicitor did say that our completion date was "On notice" and as such, can be subject to delays in the building process. It also states firmly the builders are under no legal obligation to meet this deadline" and that it is our responsibility to ensure the mortgage dates are correct (or something along those lines)

I did clarify with a sales manager previously though that we may be able to pull out of the purchase in the event we weren't able to get a mortgage in case of reapply. Thought that was as much cover we were able to get at the time.

Who knows? It might be that everything will fall into place on time so no cause for concern. We don't have much in the way of wiggle room so we're just trying to see what the best plan of action is in advance should there be any further delays.

Monday123

Ideally your solicitor would have requested a termination or long stop date to be added to your contract, so you are not forced to go through with the purchase if your mortgage offer could not be extended.

Having said that, I understand that mortgage extensions are fairly standard so hopefully you will not have a problem getting yours extended if it comes to that. I know that HSBC only requires payslips to provide extensions, they don't take you through a brand new application but just check that your income hasn't changed.