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FTB looking for advice
menikoo
Posts: 1 Newbie
Hi all,
This is my first post and I would like to ask you all for some advice please.
I am a FTB and have reserved a newbuild property a few days ago. I understand developers give a 28 days deadline for contract exchange.
My issue is that I would like to use my February payslip (big bonus) for the mortgage application. I have had meetings with a mortgage broker, who is very confident that we will get the desired amount.
However, I will receive my Feb payslip on pretty much the last day of the builder's exchange deadline... I spoke to my builder sales person and she said they aren't that strict on exchange deadline IF things are moving forward.
I am planning on instructing a solicitor asap to do all the necessary contract reviews and searches, but I will only sign once I have my mortgage offer (beginning March). This will be already 2-3 weeks after builder's exchange deadline.
What do you think? Does this sound feasible?
I completely understand that I risk losing legal and search fees if this purchase doesn't go through, but I am happy to take that risk.
Thanks all!
This is my first post and I would like to ask you all for some advice please.
I am a FTB and have reserved a newbuild property a few days ago. I understand developers give a 28 days deadline for contract exchange.
My issue is that I would like to use my February payslip (big bonus) for the mortgage application. I have had meetings with a mortgage broker, who is very confident that we will get the desired amount.
However, I will receive my Feb payslip on pretty much the last day of the builder's exchange deadline... I spoke to my builder sales person and she said they aren't that strict on exchange deadline IF things are moving forward.
I am planning on instructing a solicitor asap to do all the necessary contract reviews and searches, but I will only sign once I have my mortgage offer (beginning March). This will be already 2-3 weeks after builder's exchange deadline.
What do you think? Does this sound feasible?
I completely understand that I risk losing legal and search fees if this purchase doesn't go through, but I am happy to take that risk.
Thanks all!
0
Comments
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Before your solicitor will allow you to exchange you will need:
A mortgage offer,
Searches (takes around 2-4 weeks to get),
Answers to any enquiries.
If you instruct the legal work before you have an offer, you risk losing money on their costs.
If you leave the legals until the mortgage offer is issued, it will over run the 28 days by at least a couple of weeks at best.
I would speak to your broker and solicitor to see what they say. A lot will depend on how happy you are risking your money.I am a Mortgage AdviserYou should note that this site doesn't check my status as a mortgage adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.0 -
If you are looking to increase your borrowing by using your bonus payment, you will find that most mortgage lenders do not count bonuses towards your borrowing unless it is a guaranteed payment - as per contract
I had a bonus in lieu of benefits when working for a start up agreed annually. On payslip this was listed as £5000 bonus and mortgage provider would not accept it until they had a contract from my employer stipulating this was a guaranteed annual bonus0 -
You really need to be having this conversation with your broker.
If they have any sense, they have calculated affordability based on current data and have been happy to proceed. So why wait?
Backing a bonus which won't be paid for six weeks against a 28 day exchange doesn't make for good broker/builder relationships.I am a mortgage broker. You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice. Please do not send PMs asking for one-to-one-advice, or representation.0
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