Mortgage expiry date - Nationwide

Lucy28

Hi,

I am a FTB and have just received my mortgage offer today from nationwide everything has gone through very smoothly and quickly I was sent my offer text the day of my valuation which was Monday and received the offer today Thursday which I was very impressed with. Also I am using the help to buy London scheme and was given authority to proceed within 7 days. I was very worried as my credit isn't great nothing major but a few missed phone bill payments around a year ago.

Anyway I am buying a new build which isn't complete till October/November I know someone who works for th e developer who's advised ,me it's likely to be mid November. My offer expires on 7th October to which my friend at the developer has said she is almost certain the flat will not be ready by then. I am now panicking I have spoke with my broker who is saying don't worry we will just replace with another lender if they will not extend.. I have read nationwide extent by 15 days most which is still no good to me. I am also worried as my credit has now gone down significantly as nationwide amd another lender have left Hard footprint on my file.

I am extremely worried that if nationwide don't extend which I am assuming they won't then I won't be offered another mortgage due to my change in credit file. I feel like the mortgage offer I have now is practically worthless as it's going to 100 percent expire before completion so I don't feel like I can celebrate just buying my first Home or even start buying bits.

Also I remember very clearly my broker telling me at our appointment the offer would be valid till mid November he is now saying he didn't say this. I am really wondering why he didn't put the application in later.

Has anyone experienced anything like this or have any advice please?

kingstreet

A Nationwide offer lasts six months with a maximum two week extension.

Why didn't you use Halifax for example and get a drawdown deadline of 31/12/2017 which its HTB - EL products do?

It's all very well getting the best deal, but if it expires before the build completes, you end up looking at your situation and wondering why you did what you did.

Did you use an experienced newbuild broker who knew the potential build over-run? We are constantly telling people when buying a newbuild, forcing yourself into the strict offer periods of lenders like Nationwide means you have to be totally certain the property will be built as stated in the reservation.

Lucy28

I didn't use Halifax because I used who the broker recommended to me at the time and that was nationwide also I don't think Halifax were willing to lend me as much as I needed . Plus he told me my offer would be valid 6 months from exchange which is 26th may he did not say 6 months from issue date and I clearly remember this.

The brokers were reccomended on the help to buy website as experienced new build brokers..

So it is almost certain I will need to re apply .? And effectively the mortgage offer I have now is worthless ?

kingstreet

Nationwide offers last six months from the date the valuation is done, not from issue date, nor exchange date.

Many solicitors won't allow exchange of contracts to take place where the offer will expire before the property is finally built and you should consider carefully if doing so would be in your best interests if your solicitor is happy to consider it.

If affordability was dependent on a lender like Nationwide offering the amount you need, it seems your broker had little choice but we usually find more flexible offers (easyish to extend) from the likes of Santander or Skipton often involve similar lending amounts to those offered by Nationwide.

If indeed Nationwide was the only game in town from an affordability point of view, did your broker put this in writing to you in a suitability report, explaining the possibility of a re-apply and further cost if the build timetable over-ran?

Lucy28

I have emailed my solicitor for some advice on this issue as I don't feel comfortable exchanging contracts even if they are happy for it to go ahead as I don't have a valid mortgage offer in place.

As far as I am aware nationwide was not the only lender who would lend to me as i also had a DIP from natwest my broker advised that his reason for choosing them was because they had the lowest rates on the day and there valuation was free.

He did not put this to me in writing in a suitability report However he did say if the build over ran I would need to re apply but as I said he advised the offer would,be valid till mid November not October. He also advised me not to exchanged contracts before the deadline even if mortgage offer was issued in the next fee weeks as the offer was valid 6 months from expiry date

Would you advise me to decline this offer and re apply to a different lender?

Lucy28

6 months from exchange date sorry