New Build Developer forcing me to use their broker

henrygregory

Hi there,

Have been trying to get a new build property for quite some time. Was looking at using a Help to Buy Equity Loan. Having dealt with a number of these developers, its always the same format, they first of all want you to speak to their broker (who is affiliated with the developer) so he can work out if you can actually afford the place and what sort of mortgage he can put you on.

Fair enough, however, it makes it very hard to negotiate on a price when the developer's broker knows exactly what deposit you have and if you can easily afford the home or not. I feel this should be kept independent.

Can anyone give me some advice on the following:
I have enquired about a home the developer has put up on their site. Doesn't look like it has had much interest as it has been on for a good while.
I contacted them and they have come back saying:

The headline price cannot be amended but we can offer incentives on the plot however, would require you to be pre-qualified first by our recommended brokers before we enter into any negotiations.

Do I have to deal with their broker? - I know I can afford it.
Secondly, I have actually already dealt with this broker so I know I would be accepted for a Help to Buy Equity Loan on this development.

In summary, I don't want the developer having any idea on what my finances are.

lee111s

Tell them they can speak to your independant financial advisor if they wish, or they can speak to your solicitor who can confirm you have the funds in place (providing you can show this to your solicitor).

kingstreet

Builders don't often reduce prices because the comparables will later kill their ability to sell at the higher price.

Often, cash incentives are used instead as you have remarked.

Frankly, it doesn't matter what a newbuild broker knows because the builder isn't negotiating on what it thinks you can afford, its doing it based on its own pricing/marketing policy.

It isn't like dealing with an EA on a "normal" purchase.

DonnaBurris

Thanks for the advice it helped me deal with broker.

martinsurrey

henrygregory wrote: »

Do I have to deal with their broker? - I know I can afford it.
Secondly, I have actually already dealt with this broker so I know I would be accepted for a Help to Buy Equity Loan on this development.

In summary, I don't want the developer having any idea on what my finances are.

You don't HAVE to do anything, but in a similar vein, the developer doesn't HAVE to consider your offer if you don't...

Futuristic

We had this issue and there is little you can do. Until you sign the reservation form the developers can reject your offer in which case there's probably a demand so no rush to sell.

However both consumer code for home builders (s2.5) and help to buy rules state you can't be forced to use any financial advisor by the developers. But they can offer incentives in order for you to do so.