What happens with mortgage if made redundant during buying process (new build)

mmcg

Hi all, just a quick question, I am at the early stages of buying a new build homes through Taylor wimpey via a part exchange. I work in an oil and gas related industry and you may have seen that BP is announcing job cuts, my company is also very quiet at the moment and being the worrier that I am I'm preparing for the worst case scenario (I should concede that redundancies) have not even been mentioned here yet). My question is will the mortgage offer he withdrawn if I am made redundant before I formally purchase the house (it will be ready in around 3 months), I would assume that it would be withdrawn, if so, where would this leave me with Taylor wimpey, I will have already picked kitchen, bathroom etc so will I be legally obligated to still buy the home? Again I assume I would be but I would appreciate if anyone could clarify this for me?

Many thanks

Flugelhorn

Re Taylor Wimpey, unless you have actually exchanged contracts then you are not obliged to buy the house. My first house was a new one and I bought it with someone else's choice of kitchen and bathroom - happens all the time.

lee111s

You would have to inform the lender of any change of working circumstance up until completion.

You are legally obliged to buy the property if you have exchanged contracts.

mmcg

Flugelhorn/Lee thanks both for your quick replies. So if I'm understanding correctly, if I have a change of circumstances before the exchange of contracts I can essentially "get out" of the deal? If so, how late in the process is the exchange of contracts?

Thanks again

maninthestreet

mmcg wrote: »

Flugelhorn/Lee thanks both for your quick replies. So if I'm understanding correctly, if I have a change of circumstances before the exchange of contracts I can essentially "get out" of the deal? If so, how late in the process is the exchange of contracts?

Thanks again

It's the penultimate step, the next step in the process is completion.

Flugelhorn

exchange tends to be between 28 days and 0 days before you actually complete and move in. It is when a deposit of 5-10% is given to the solicitor and specific moving in dates are agreed. It is not the same as the deposit you pay to reserve a new property

Yorkie1

Although some developers insist on very early exchange (as opposed to just reservation). OP would need to check their specific situation.

Thrugelmir

Yorkie1 wrote: »

Although some developers insist on very early exchange (as opposed to just reservation). OP would need to check their specific situation.

Many do. Once contracts are exchanged the developer has an interest in finishing that particular property as soon as it is able. Tying up capital in unsold finished houses is financially expensive.