New Build Mortgage Valuation

sternjohn662200

My wife and I are first time buyers and have currently reserved a off plan new build property using help to buy which is due for completion in July and which is being valued by Nationwide/Countrywide early next week as part of their mortgage offer.

The question i had is presuming the value comes back all okay - is the valuation then okay for the mortgage offer so 6 months (tying in with help to buy offer). Just i have read some articles on the internet about buying off plan where some imply that if the house prices would fall then the mortgage offer could be affected. What i dont get is how would the lender know the house prices have fallen for the property without doing a second valuation upon completion of build? Or would they use their house price index?

Thanks

kingstreet

Nationwide purchase offers last six months from the date of valuation and can be extended only two weeks.

After that, it's a new application, valuation etc, so you don't apply to Nationwide until you can be certain the property will be finished within that timescale.