Something about worried about mortgage extensions

itani

So we're currently applying for a new build help to buy mortgage. We're FTB and if we do exchange in the next 2-3 weeks we will most likely need a mortgage extension as the building won't be ready till May.

With how we don't know what will happen in March with Brexit can Barclays (who we are applying with) just decline the extension and we lose our deposit?

Would love to hear from you guys thanks!

davidmcn

Brexit or no Brexit, lenders are entitled not to extend their mortgage offers (or withdraw them early, though that rarely happens). So make sure your contract allows you to pull out if your mortgage offer isn't extended.

itani

davidmcn wrote: »

Brexit or no Brexit, lenders are entitled not to extend their mortgage offers (or withdraw them early, though that rarely happens). So make sure your contract allows you to pull out if your mortgage offer isn't extended.

Do I speak to the solicitors about this?

davidmcn

itani wrote: »

Do I speak to the solicitors about this?

Yes, your solicitors negotiate the contract on your behalf. They should be explaining to you what's in it. I hope they're not the developer's "recommended" solicitors...

itani

davidmcn wrote: »

Yes, your solicitors negotiate the contract on your behalf. They should be explaining to you what's in it. I hope they're not the developer's "recommended" solicitors...

They told us upon reservation we have to use their solicitors. Do you think the developer would reject this if we put it in the contract?

davidmcn

itani wrote: »

They told us upon reservation we have to use their solicitors.

Do you think they're really going to refuse to sell to you because you use a different solicitor? You're always best to use your own solicitors - you want someone who is acting on your behalf, rather than a firm who has a much more important relationship with the developer.

Do you think the developer would reject this if we put it in the contract?

They might, but it's hardly uncommon as a concern among buyers, given how much you might lose if you end up without a mortgage offer and in breach of contract.