FTB New Build Mortgage

Racheli1987

I am looking at buying a new build property from Persimmon homes, and having spoken to them about wanting to reserve one of the plots they have advised that in order to secure the plot, through their Helping Hand scheme, I have to use their recommended financial advisor/mortgage broker.

Please see an extract from the email from them

I have spoken to head office regarding the mortgage and financial advisers that can be used for this scheme. Due to the nature of the scheme they will only accept the reservation if you agree to use our recommended financial adviser who are New Homes Mortgage Services for this site. We can offer you a further good will gesture of £500 towards legal fees if you are loosing out on a free valuation fee from your own bank or building society.

Now I have not yet had a look at the terms of the helping hand scheme which I would want to review with my conveyancing lawyer, but I thought that under rules it could not be specified by the home builder who your mortgage has to be taken out with.
The rates quoted are with a high street bank and are cheaper than I looked at directly.
I just wanted people's thoughts.

Thanks

Doofs69

Not sure what Persimmons criteria is on their New Build plots but if you have the required deposits and have your finances in order along with all the necessary paperwork, and seek alternative mortgage advice with a Fee Free mortgage broker who can seek and obtain a suitable mortgage from an array of lenders then I cant see why you need to use their own mortgage adviser ?

ftb2015

Not sure if they can force you to use their adviser, however, from our personal experience of very recently buying a new build our builder was keen for us to use their recommended adviser and we said no that we were using l&c. L&C turned out to be useless so we decided to try the builders adviser after all, he had us an aip with natwest within 24 hours and we're now in our new home 10 weeks later.

Racheli1987

Hi both.

Thanks for the responses. I have had a conversation with their recommended mortgage advisor and they gave me a reasonable rate compared to what I have found going directly, it's just now, the bank who they have got the best deal with are having to review the application which is slowing things down.
Persimmon are saying I have to go with the mortgage advisor on the plot due to the shared equity loan scheme I am looking at buying with.

I didn't think they could force me to do this, and as the bank the mortgage advisor found is having to review the mortgage application, vs a decision in principle I have got from another bank before starting my search I just want to get the reservation process started as quickly as possible.

Doofs69

If its a reasonable rate compared to what you have found elsewhere, then to me it sounds a no-brainer. Its in their interests to sell you the house and get the mortgage in place for you.