6+ months between exchange and completion?

We're about to reserve a new build property (house) off-plan. It will take 6-8 months to be build. It's a local builder with a good track-record of completing within that time frame.

Yorkshire Building Society seems to have the best deals. They're direct only though, so we can't go through a broker. Are they likely to make problems out of the 6 months + between exchange and completion? Or any other recommended providers?

A broker I spoke with recommended Santander as they're flexible around that but we've had huge issues with them in the past (different product) and I'd rather avoid if at all possible.

We shouldn't have any other issues with getting mortgage approved, 72% LTV, both in full-time employment, and regarding affordability we are fine (can "afford" double what we need).

Please no arguments for/against new build - for us it is the right decision; we can't find anything existing for the size we need within the area.

Replies

  • ACGACG Forumite
    21.7K Posts
    Part of the Furniture 10,000 Posts Name Dropper I've helped Parliament
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    Mortgage offers are typically valid for 6 months from offer. So you need to check with them, whether they would be happy to extend the offer when the time comes and more improtantly, what they will need at the time so you can be prepared for it.
    I am a Mortgage Adviser
    You should note that this site doesn't check my status as a mortgage adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.
  • ACGACG Forumite
    21.7K Posts
    Part of the Furniture 10,000 Posts Name Dropper I've helped Parliament
    ✭✭✭✭✭
    Also, dont get tied up on rates. Unless you are looking for a pretty hefty Mortgage the fees are just as important, if not more so.
    I am a Mortgage Adviser
    You should note that this site doesn't check my status as a mortgage adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.
  • HangTimeHangTime Forumite
    60 Posts
    We had a similar issue a few years back in that we agreed to buy a new build in the summer but it didn't actually complete until early December. Even though we were just porting our existing mortgage (rather than actually wanting to change any terms), by the time we moved in the mortgage offer had expired so we had to resubmit it. It was a bit of a faff to be honest apart from anything else because it ended up with us having a slightly extended mortgage term (with us effectively borrowing some extra money) because they just shifted the whole original remaining term from the summer and whacked it on in December.

    I don't really have much advice other than to check in with your lender and possibly see if you can 'refresh' your mortgage quote nearer the time. In my case even something supposedly simple as shifting an existing portable mortgage to a new property fell foul of offer expiry.
  • IthilienIthilien Forumite
    43 Posts
    Okay thanks both. Yes having to resubmit the whole thing is what I'm concerned about and would rather avoid.

    Good point re fees; for some of them they're more than what we'll be paying per month.

    If anyone else has recommendations for lenders flexible around this that'd great.
  • nikkih72nikkih72 Forumite
    64 Posts
    we have a 3 month ( if mortgage approved ) exchange to completion, we are using Natwest for a new build
    Just a quick question leasehold or freehold,
    if leasehold please please have a read here before you decide,,, leasehold walk away ! been all over the news and papers over the last week
    https://www.facebook.com/groups/786983251448976/
  • IthilienIthilien Forumite
    43 Posts
    It's freehold, yes I knew all about it even last year; friends of ours bought a new built in 2016 and they paid extra to buy the freehold. Agreed it's imperative to check though!
  • NikkiH .. not all leasehold properties come with those awful terms attached. This is why one needs a good and thorough solicitor and also should go over the forms themselves
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