Reserving a new build without mortgage?

1994Baz94

Hi,

Would there be any way to reserve a new build property without having a mortgage agreed in principle?

I’ve recently graduated and start a graduate scheme in the coming weeks. The money is good and I’m therefor looking to save towards a house. I have about 4k of savings and me and my partner are looking to save about 1k a month between us. Given this and looking to utilise the help to buy 5% deposit scheme, by about February time we’d b in a position to apply for a mortgage.

The issue is a New housing estate is about to be constructed, in an area in which we’d love to live and I fear missing out given the time we’re looking at being mortgage ready. Is there any chance the housing company would take a reservation fee and reserve us a property despite the fact that we’re not currently in a position to pay the deposit for a mortgage inthe property?

Thanks kindly in advance.

Wicked_Lady

That sort of timescale would only give you 5K to add to your existing savings of 4K so are you sure that would be enough money?


What about the added expenses of solicitors fees, moving in costs, furniture, white goods etc?

1994Baz94

9/10k is around 5% of a 2 up 2 down property where I live, East Midlands, I’d have to use the help to buy scheme for the 5% deposit.

The question is, in the mean time, whilst we are saving for the deposit, is there any way I could reserve a plot in the mean time?

Thanks a lot.

oystercatcher

It might be worth talking to a mortgage broker.
A relative has managed to obtain a mortgage while completing a PhD based on a job to be started next month.
They wouldn't take into account the PhD funding but the job contract seems to be good enough.
There is a good deposit though and spouse is also working.

eddddy

The requirement with newbuilds is often that you reserve a property and then exchange contracts within 28 days.

I doubt that the developer would want to take the risk of waiting until February to see if you can get a mortgage and exchange contracts.


And many grad schemes have 6 month probationary periods. In your position, I'm not sure I'd want the risk of exchanging contracts during a probationary period, and I'm not sure that a mortgage co would offer a mortgage during a probation period either.

jennhg88

Some developments want to see an AIP at the point of reservation too....

joanneinwonderland

It will possible depend how popular the development will be.

We are in Scotland but reserved in the March with no mortgage organised and a flat to sell and the builders did not chase us to exchange despite their terms saying 28 days.

Flat sale completed in the September and we completed our purchase in the October.

Speak to the sales team and also a mortgage advisor as they are the only people who can confirm if your plan is realistic.

PersianCatLady

There is only one person who can answer your question with any certainty and that is the developer who is building the houses.