Refund of Deposit

Hoyinah

Hi everyone,

I just wanted to get some advise from everyone as I am currently a first time buyer. Please be aware, this is quite a lengthy one...

I've seen a new build flat that I've liked by Barratts, the completion date isn't until end of May/June'16 time. But they would like a mortgage to be accepted and exchange of contracts done within 28 days, which isn't a problem. Upon exchange I would have to pay a 5% deposit down.

I've spoken to a mortgage broker which has accessed me to say that I could borrow so much money if I was to include my commission, (which is fine). But of course with commission it isn't a certain income. And with the completion date of the apartments being at the end of May. If there was a scenario that the mortgage has been accepted by the banks and exchanged, paid over a 5% deposit over, and between the time of exchange and completion I was to not be paid commission for a month or so, would the banks still lend to me? Or would they reassess my position? Worst case scenario, If they do reassess my position and they were to find out that my commission has not been as rich as the previous months, would they refuse to lend? And if they do refuse, would I lose my 5% deposit?

Any help or advise would be grateful.

Cheers,

kingstreet

Your mortgage will be based on your earnings for the last three months or longer, not the next three.

amnblog

This is a tricky matter if you are relying on your commission income to make affordability but that commission income in unreliable.

A KS says, you are underwritten today on previous commission and from that your mortgage offer is hopefully generated allow you to exchange.

That is fine is you do complete your purchase in late Spring.

if however, the build drags out, it is possible to find yourself in a situation where the Lender needs to reassess payslips to extend your offer and finds there is a hole where they expected to see income.

Your mortgage broker should manage this for you accordingly, and if you are not comfortable they can do this, use another broker.

It seems likely that your situation may put extra focus on your mission to close sales making this a non issue.