New Build [Bovis] want us to speak to their IFA/Mortgage person

EmsLdn

Hello all,
We've think we have found a house we like and are about to reserve the property. Before this can happen, the developers [Bovis] have said we need to talk to their mortgage person. I asked if they were going to try and sell me something, to which they said 'no'. I then asked if they were running a credit reference check, to which they also said 'no'. We have an IFA and a mortgage agreed in principle already.
My questions are - has anyone else had this with a new build? What is the point of this further check? Has anyone bought a property from Bovis without doing this 'affordability check'?
I would rather not have to give our details to a third party that has no part in the purchase of the property. Am I being overly paranoid or is it worth investigating further?
Your advice and guidance is appreciated.
Thanks! :beer:

hazyjo

Just say no. If they say it's compulsory, ask them to put that in writing.


Of course they want to find you a mortgage. There will be a fee/commission. They can word it how they like - in effect they're not really selling you anything, they're putting you in touch with a lender who will be selling you the product.


Don't take their legal services either. Use an independent solicitor.

kingstreet

As with an EA purchase, the builder will want a qualification to ensure you are in a position to proceed.

Newbuild is a specialist sector and where cash incentives and HTB are concerned, it's easy for a general broker who only does such a case once or twice a year to miss something which can cause weeks of delay.

EmsLdn

kingstreet wrote: »

As with an EA purchase, the builder will want a qualification to ensure you are in a position to proceed.

Newbuild is a specialist sector and where cash incentives and HTB are concerned, it's easy for a general broker who only does such a case once or twice a year to miss something which can cause weeks of delay.

Thanks for reply. Is your assumption that our broker is a general broker? There's a long list of recommended IFAs with experience of the scheme on the HTB website. Surely my certificate of principle agreement should be sufficient? I understand that there are snafus with this sort of thing, but we were asked for evidence of earnings, proof of deposit, etc.

As Hazyjo has suggested, I'm going to ask via email if it's mandatory so I have it evidenced in writing either way. Thanks again!

Jane_B

Having a mortgage in principle should nullify their need to do this, most new build companies will ask you to have a quick 10-15 min chat with an approved mortgage broker, to confirm to them you are in a position to move. As they will no doubt get lots of people in, wanting to reserve a property and not have done their homework/prepared before hand. They will want to weed out the people who are legitimate buyers. However having the AIP for the correct amount should be all they need to show you are ready and able to buy the home you are after.

kingstreet

As a specialist newbuild broker, I'd say there's good and bad in newbuild as there's good and bad in anything.

The builder will simply want to avoid nasty surprises and to ensure you can meet the exchange of contracts target.

Unfortunately, an agreement in principle doesn't actually verify/prove what is required as (for example) the HTB affordability calculator may not have been done, or done properly. Any builder cash incentives may not have been correctly established and the future cost of the HTB equity loan and any ground rent & service charge may not have been taken into account.

FWIW you don't get a better service from us by walking voluntarily through our front door compared with being introduced by one of our builders. In fact, you'd avoid the £250 fee we charge via taking the latter option, eg via the Orbit HTB website where we can also be found.

jennhg88

Have had this twice with newbuilds, have had to have a conversation with their mortgage person who just confirms what I've already been told by my own chosen broker. Their mortgage person then gives them the green light to go ahead and allow us to reserve the plot.
No formal credit check or proof of anything both times.

EmsLdn

jennhg88 wrote: »

Have had this twice with newbuilds, have had to have a conversation with their mortgage person who just confirms what I've already been told by my own chosen broker. Their mortgage person then gives them the green light to go ahead and allow us to reserve the plot.
No formal credit check or proof of anything both times.

It's good to know you've been through the same sort of thing too. Thanks for your reply!

bethwilliams95

When I reserved my new build with a different company (gleesons) we had to chat to their mortgage broker to assess affordability before we were allowed to reserve. We ended up staying with their broker as it was free.

kingstreet

kingstreet wrote: »

FWIW you don't get a better service from us by walking voluntarily through our front door compared with being introduced by one of our builders. In fact, you'd avoid the £250 fee we charge via taking the latter option, eg via the Orbit HTB website where we can also be found.

Just to untangle myself here, we charge £250 broker fee. This includes those who find us on the HTB website

If you are introduced by one of our brokers, we don't.

The service is the same.