Help - confused about CML form

sarah759365

Hi

We are buying a new build house from a developer. We negotiated £65k off the asking price. We have had a mortgage valuation and received a full mortgage offer.

We should now be ready to exchange however our solicitor is saying we can't until we hear that our lender (accord) is happy with the CML disclosure form which was sent to them.

The £65k reduction is listed on the mortgage valuation report as an incentive, and I thought that as we have received and signed our mortgage offer this would be the last stage?

Is it usual for this final stage to come after a mortgage offer? How long does this normally take?

Desperate to exchange as our chain is getting frustrated!!

Thank you

kingstreet

If it's being classed as an incentive, it's been put in the wrong place!

A discount/price reduction should be in 2b on page one only. An incentive should be in 7 on page four only.

The developer needs to do a revised form.

BTW it's a UK Finance Disclosure Form nowadays.

sarah759365

kingstreet wrote: »

If it's being classed as an incentive, it's been put in the wrong place!

A discount/price reduction should be in 2b on page one only. An incentive should be in 7 on page four only.

The developer needs to do a revised form.

BTW it's a UK Finance Disclosure Form nowadays.

Thanks Kingstreet, I had never heard of it until our solicitor advised of it today and called it a CML form. She described it as an incentive too so now I'm really confused. I'll go back to her

kingstreet

A discount is a reduction in the contract price.

An incentive is a cash/non-cash benefit where the contract price remains the same but the developer throws in white goods, SDLT or similar.

I'd speak to the developer first as it is their error to correct.

A mortgage lender will typically only accept builder cash incentives of 5% of the purchase price, so unless you are buying for more than £1.3m you will be unable to proceed as things stand.