New build Deposit

Oh_Daesu

Hi Guy's,

Looking for some advice, Two weeks ago we didn't get turned down as such for a new build property but the Mortgage broker's were not keen to lend to us on. I rang them up today after having two meetings with banks and getting very favourable potential mortgage off Nationwide. All of a sudden they want to help telling us to reserve a property and get them to do the mortgage, I am now super confused do I go with them or do it myself?

Other issue I have is I'm a contractor and worried I will lose my 5/10% deposit if I lose my job during the initial contract exchange period.

do you lose the 5% deposit if you back out??

Any help would be great.

da_rule

If you back out after exchanging contracts then yes you will potentially lose your deposit.

If you pay a reservation fee then you'll lose this if you pull out at any time.

Oh_Daesu

da_rule wrote: »

If you back out after exchanging contracts then yes you will potentially lose your deposit.

If you pay a reservation fee then you'll lose this if you pull out at any time.

After the initial reservation we exchange contracts 28 days after roughly how long would it take from there to completion? and can the mortgage lender pull out anytime?

da_rule

Completion depends entirely on what stage the build is at. It can be a month after exchange (or sooner) or a year (or more after exchange). Most mortgage offers are only valid for 6 months so most builders aim to exchange and complete within this time.

In theory the mortgage lender can pull out up to completion. In reality this would probably only happen if you lied on the application and they found out or if there was a change in your financial circumstances.