Not sure what to do now

Doodlebug5

Hi,

I need some help.
We exchanged on a new build around June time using help to buy for 20%, a £65k deposit and a mortgage for the rest.
My other half has a default from June last year (fully satisfied) so we went to precise and got a mortgage offer with them. The offer was given to us at the end of March with 6 month validity.
The build has been delayed and delayed and eventually went past the 27th October mortgage validity date.
We have spent 3 weeks trying to get a 3 month extension but have just been told by the builders that a delay has again occurred and the house may not be finished till the end of January.

Our extension will run out at the end of January and I also suspect the help to buy only has a six month period between exchange and completion (but I need to check that)

What do I do now? The extension is worthless unless they finish before end of Jan and the likelihood of that happening is about 10% looking at how slow they are to build the house.

Can I go out to the market again and get a mortgage that isn’t help to buy? My parents have offered to lend us more of a deposit so our ltv is higher. Or do I have to go down the help to buy route as that is what we exchanged based on?

Doodlebug5

Sorry to bump but does anyone know?

kingstreet

You'll need to apply for a new mortgage and your solicitor can obtain an extension from the HTB Agent in such cases.

amnblog

A bit baffled...?

If the property is not yet finished anyway, what is the advantage of dropping the Help to Buy Scheme?

You can reapply to Precise for the HTB mortgage, which I assume you arranged via a broker (who should be managing things) anyway.

Doodlebug5

I think it was a mistake to go down the htb route. We are limited in our mortgage lender with help to buy

Precise are also very awkward and slow to deal with so I’m keen to look elsewhere for an offer.

kingstreet

With a one year old default, which lenders outside of the HTB list do you think will lend?

Presumably, outside HTB and borrowed money, your LTV is going to be a lot higher too, reducing your lender pool further...?

Doodlebug5

That’s what I’m on this forum for. I don’t know if mortgage companies will lend on a default or not...

My parents have also offered to increase my deposit so my LTV will be around 50%. I was hoping this would change things? Or do you think not?

amnblog

I would have thought buying on a H2B basis is a much bigger issue than trying to find a swifter lender?

kingstreet

You said your parents would lend you the money. Mortgage lenders aren't great fans of borrowed deposit money.

Being able to combine this with recent adverse credit, will need research of lender options.

Doodlebug5

Sorry lend = gift

We wouldn’t pay them back

SuboJvR

You are correct, help to buy authority to proceed is valid for six months.

You will need to reapply for that, assuming you are confident it will be completed within six months.

If your mortgage extension is not enough you will also probably need to reapply (rate may change, they’ll want to do checks again, but it may not be as painful as the first time around? Not sure?)

Discuss in detail with your broker. Is there a long stop date in your contract? Are the developer finishing other properties late - how late?

I wouldn’t mess around trying to change up your mortgage and stuff now, it could all backfire horribly and you are legally obligated to complete on the purchase now. Discuss with broker and solicitor.