New build

Op89

Hello

I am looking at buying a new build home. I have been told the builders want to exchange in 2 months and complete January 2019 or latest Feb 2019.

I went into my bank today to ask to start the process. They told me that it would have to be two applications because the mortgage offer is valid for only 6 months. They are happy to complete two applications but I might not fit the rules when I come to apply again.

Has anyone had any experience with this? It seems impossible!!

thanks

kingstreet

Speak to your solicitor as they may not be prepared to exchange contracts with a mortgage offer which will expire before the build end-date.

Typically, lenders issue offers with a six month longevity. This is usually nowhere near long enough for newbuild.

AFAIK the products with the current longest drawdown deadlines are 30/11/18 and 31/12/2018 so you might have to wait to apply until these have ticked over to 31/03/2019 or similar...

crystalpinks

This is naughty of the developer, they shouldn't really release plots for actual sale til about 6 months before they'll be ready!
My mortgage offer is from Halifax, issued 1st Feb and doesn't expire til Dec if that's any help?

Op89

Thank you both that is very useful. I decided there is no point paying a non-refundable deposit knowing I will have to make two mortgage applications. And then there is no guarantee what rate I lock in on the offer and whether I am accepted the second time. Because of this I have made the decision not to proceed and I am back looking around.

Thanks

Thrugelmir

crystalpinks wrote: »

This is naughty of the developer, they shouldn't really release plots for actual sale til about 6 months before they'll be ready!

Not everyone requires a mortgage. If there's interest why not sell the plots.

andyf1980

Yes, happened to us. We had to make 3 applications. Nightmare.

Supersy

We went to the launch event for the new development, we were told would be ready August, Now they saying Jan 2019, was Story Homes... Our mortgage offer is with Natwest and will run out in August, We will have to re apply with Natwest again in August, ours is also Help to Buy.... Story have said they will pay for any valuations etc on re application.