New Build and Mortgage Offer

Noobie2011

Probably an very open ended question but does anyone know at what point after reserving your new build house will they start chasing you to have a Mortgage Offer.

The reason I ask is due to my job circumstances we may delayed in applying for a Mortgage until start of July and we have already reserved the house about 2 weeks ago and it is due t be built in September. So time wise this would mean from applying for a mortgage to the house being built would be around 10 weeks but would they they have an issues that we have reserved 2 weeks ago with a AIP but not progressing to application until July.

If helps it is Help to Buy we are going through and we have a house to sell which is Sold STC but likely not going to complete on the sale until May at the earliest and the new build people have said we cannot really progress until we have sold our house.

Thrugelmir

Developers normally specify that exchange of contracts occurs within 28 days. This timeline will be allowed to slip if there's progression towards the objective.

Doubt that the developer will wait until July. They will wish to know the property is to be sold. Not least for cashflow purposes.

Noobie2011

Thrugelmir wrote: »

Developers normally specify that exchange of contracts occurs within 28 days. This timeline will be allowed to slip if there's progression towards the objective.

Doubt that the developer will wait until July. They will wish to know the property is to be sold. Not least for cashflow purposes.

Yes I would have expected that but when we reserved and advised we were using HTB and had a house to sell they advised there are no real dates set for anything etc until we have sold our house. I have found it weird it has been 3 weeks nearly and apart from me chasing them on option choices they have not chased us on anything

crystalpinks

Not sure how it works when you have a house to sell, as we were 1st time buyers, but did you sign a reservation agreement? It should say whether there is a 28day exchange clause or anything similar. If that is the case, then they may not 'chase' you as such, just send you a letter saying something like, 'exchange by X date or your house will be remarketed on X date'
My mum bought a new build and had a house to sell, but didn't require a mortgage so they were quite relaxed about timeframes, however, I'd imagine if you are applying for a mortgage they are going to want to see an offer pretty soon! They will want to ensure they are definitely getting their money if they are anything like our chosen developer- they can be 'pushy' to say the least!

Noobie2011

crystalpinks wrote: »

Not sure how it works when you have a house to sell, as we were 1st time buyers, but did you sign a reservation agreement? It should say whether there is a 28day exchange clause or anything similar. If that is the case, then they may not 'chase' you as such, just send you a letter saying something like, 'exchange by X date or your house will be remarketed on X date'
My mum bought a new build and had a house to sell, but didn't require a mortgage so they were quite relaxed about timeframes, however, I'd imagine if you are applying for a mortgage they are going to want to see an offer pretty soon! They will want to ensure they are definitely getting their money if they are anything like our chosen developer- they can be 'pushy' to say the least!

Yeah because we are using HTB and have a house to sell the initial rule is we were not allowed reserve a property until and offer was made on our house and then not allowed to apply for a Mortgage until we have then reserved a plot.

We have now dine that about 2 or so weeks ago but the Sales Lady when I think I mentioned about Exchange and Options dates said do not worry about them as they are just estimate dates to get something on paper but as we are selling a home then we are not in a place to commit to any dates. I did find this slightly weird as the fact we have Sold STC means we are in a position to start getting dates etc for our completion roughly and I was sure Taylor Wimpy will have some movement but if we said our buyer could not exchange say until June they would potentially as you say pull the reservation as cannot wait that long as we have given them no commitment.

It may be risky but we know our options deadline will be in about 4 weeks or so, so if we committed a few thousand on that(50% they require) then this may show them some commitment even though not an exchange of contracts which binds us to paying the deposit. And yes I am aware the more we spend before getting a Mortgage Offer is very risky no matter how confident we are in thinking we will get an offer.

I have another thread as this is to do with me potentially getting a new job and the lender we are able to go with(few credit issue narrowing it down) has a clause that says:

"Usually, employed applicants will have been in their current job for a minimum of 3 months and will not be on probation. In addition, the last 12 months' employment history is required."

Now may be not be much hope but the fact they start with Usually there is a chance we may still be okay if I get a new job in the next few weeks but worst case I would need to wait 3 months until out of Probation period and can provide 3 months payslips. The funny thing is I know it is all about job security as going from a job I am in for 13 years to a new one is more risky but overall with the location and higher wage financially we will be much better off. It is also with a very big company which I know any company can go bust or make redundancies but far more secure.