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New Built Flat, Completes June, Offer Valid for 90 days
gam3r
Posts: 214 Forumite
Hi,
I have a mortgage offer on a new build flat that completes in Jun 15.
The offer is valid from 90 days of issue meaning it would expire on the 27 May.
Speaking to my mortgage advisor he said he can't guarantee 100% that they would renew the offer, but he said from past experience and in this case he doesn't see any issue in getting a renewal. He spoke with his colleagues and manager and he feels that it shouldn't be an issue given the case and it's a simple process. However, that doesn't mean 100% that I will get a renewal.
How have people dealt with this situation?
Obviously the risk here is that come the 27 May, the offer is not renewed, and I am in a legally binding agreement to purchase the property without the funding in place, meaning i will loose my 10%.
I have a mortgage offer on a new build flat that completes in Jun 15.
The offer is valid from 90 days of issue meaning it would expire on the 27 May.
Speaking to my mortgage advisor he said he can't guarantee 100% that they would renew the offer, but he said from past experience and in this case he doesn't see any issue in getting a renewal. He spoke with his colleagues and manager and he feels that it shouldn't be an issue given the case and it's a simple process. However, that doesn't mean 100% that I will get a renewal.
How have people dealt with this situation?
Obviously the risk here is that come the 27 May, the offer is not renewed, and I am in a legally binding agreement to purchase the property without the funding in place, meaning i will loose my 10%.
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Comments
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Why did you exchange without a mortgage ready for the completion date?
Why didnt your broker recomend a lender that had a 6 month offer period?I am a Mortgage Adviser
You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.0 -
We see this all the time from buyers and inexperienced brokers.
Clydesdale perhaps?
Why would you choose a lender, or a broker (even worse) use a lender where the offer is only valid three months.
Nationwide's six months and two weeks is often an issue for us.I am a mortgage broker. You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice. Please do not send PMs asking for one-to-one-advice, or representation.0 -
kingstreet wrote: »We see this all the time from buyers and inexperienced brokers.
Clydesdale perhaps?
Why would you choose a lender, or a broker (even worse) use a lender where the offer is only valid three months.
Nationwide's six months and two weeks is often an issue for us.
It is Clydesdale, unfortunately we had no other choice than to go with this lender - there were no other lenders on the table given given the BTL deposit % and first time landlord criteria.
The broker is L&C, and he seems to think it should be an issue but obviously there is still a risk....0 -
What guarantee do you have if any that the property will be complete in June? New builds rarely if ever run to schedule. Simply too many trades involved and inevitably slippage occurs.0
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Newbuild flat BTL?It is Clydesdale, unfortunately we had no other choice than to go with this lender - there were no other lenders on the table given given the BTL deposit % and first time landlord criteria.
The broker is L&C, and he seems to think it should be an issue but obviously there is still a risk....
I can think of two other lenders offering 75%, which I believe is the same as Clydesdale.
First time landlord, or own no residence of your own?
I can see the latter being more of an issue...I am a mortgage broker. You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice. Please do not send PMs asking for one-to-one-advice, or representation.0 -
Thrugelmir wrote: »What guarantee do you have if any that the property will be complete in June? New builds rarely if ever run to schedule. Simply too many trades involved and inevitably slippage occurs.
Correct, there is no guarantee is there0 -
kingstreet wrote: »Newbuild flat BTL?
I can think of two other lenders offering 75%, which I believe is the same as Clydesdale.
First time landlord, or own no residence of your own?
I can see the latter being more of an issue...
Its both first time landlord, and no residence of my own (i.e. i own no property)0
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