Developer implying we use alternative bank for mortgage

Jon_B_2

Not really asking for advice, more of a mini rant!

Have bought a new build house off-plan with major developer on HTB-EL.

Got a DIP from Nationwide. Told by our broker that we have 6 months from formal offer to complete.

When we initially reserved, it was scheduled to be ready in October, so we were to exchange contracts by end of April.

However, it has been put back to Nov/Dec although they have started building the house.

Anyway, the cheeky sales rep for the developer suggested we find another lender who do not have 6 month completion rule, so we can exchange contracts earlier. Broker is on our side and informed us that you have a 6 month window from authority to proceed from Help to Buy. We are currently planning to exchange contracts end of May. With full mortgage offer timed in with this.

Anyway, what happens if the house isn't ready after 6 months, do we have to apply for another mortgage??

Cheers,

Jon

Thrugelmir

Developer could decide to remarket the property. That's the downside. By exchanging the developer has an interest in actually finishing the build of this property before others.

kingstreet

If you get an offer from Nationwide you have six months and two weeks maximum to complete. Any longer and you'll have to reapply.

Only Halifax and Skipton have longer offers.

On HTB your point is incorrect.

From ATP (Authority To Proceed) you have three months to exchange contracts and from ATE (Authority To Exchange) you have six months to complete. That's nine months in total.