New build exchange and completion confusion!!

kingstreet

Charles2988 wrote: »

The sofa finance has not started yet because we are not in our home. Would this affect my mortgage completion and do halifax do another credit check?

Holy thread hijack, Batman...

AnotherJoe

Charles2988 wrote: »

The sofa finance has not started yet because we are not in our home. Would this affect my mortgage completion and do halifax do another credit check?

It might do and yes they might do.

Why on earth didn't you wait rather than jeopardize even if marginally, your house purchase ?
And please next time start your own thread rather than butting into someone else's.

AnotherJoe

Sophiegass wrote: »

The reservation fee will be between £250-£1000 and the exchange is when we pay our actual 5% deposit (we’re using help to buy). I’ve seen a lot of things that say you just exchange within 4-6 weeks of reserving but I’d prefer that’s not the case.

Perhaps you had better find out which is the case?
Its one thing if you are only risking £2k to fix a price, another if its £20k.

Exchanging when its 18 months away probably wont be allowed by your solicitor anyway (at least, by a good solicitor) since your mortgage offer wont be valid for that long.

scp941

Sophiegass wrote: »

The reservation fee will be between £250-£1000 and the exchange is when we pay our actual 5% deposit (we’re using help to buy). I’ve seen a lot of things that say you just exchange within 4-6 weeks of reserving but I’d prefer that’s not the case.

If you use one of the government HTB scheme exchange has to take place within 8 weeks of reservation and completion within 6 months of exchange.



I nearly came unstuck when I was buying my new build using HTB because the completion date was on the last day my mortgage offer was valid. A week before the date the developer's solicitor contacted my solicitor to say there was going to be a two week delay. Thankfully my FA knew of a way to get the offer extended for an extra 10 working days.

kingstreet

scp941 wrote: »

If you use one of the government HTB scheme exchange has to take place within 8 weeks of reservation and completion within 6 months of exchange.



I nearly came unstuck when I was buying my new build using HTB because the completion date was on the last day my mortgage offer was valid. A week before the date the developer's solicitor contacted my solicitor to say there was going to be a two week delay. Thankfully my FA knew of a way to get the offer extended for an extra 10 working days.

It's three months to exchange from ATP and six months to complete from exchange.

But they can be extended by application to the HCA (or Homes England).

Many lenders in the newbuild market have longer drawdown period and extendable offers.

Sophiegass

I can’t see how the exchange can be any sooner than 6 months before completion because mortgage offers won’t be valid for longer than 6 months either? If that’s the case, the earliest we could complete would be March 2020 as completion is due September 2020. Which means we couldn’t reserve until Jan/ Feb of 2020, right?

Lokolo

Sophiegass wrote: »

I can’t see how the exchange can be any sooner than 6 months before completion because mortgage offers won’t be valid for longer than 6 months either? If that’s the case, the earliest we could complete would be March 2020 as completion is due September 2020. Which means we couldn’t reserve until Jan/ Feb of 2020, right?

It means you have to make another mortgage application nearer the time, and hope you get accepted.

foxy-stoat

One of the main reasons why we decided against buying from Bellway/Ashberry Homes - no guarantee that you get the price you need for your property and you have to find a buyer willing to complete on your time lines. Its not the one in East Sussex?

Seems the only folk who can buy off plan are people in renting accommodation or living with parents/friends.

Sophiegass

foxy-stoat wrote: »

One of the main reasons why we decided against buying from Bellway/Ashberry Homes - no guarantee that you get the price you need for your property and you have to find a buyer willing to complete on your time lines. Its not the one in East Sussex?

Seems the only folk who can buy off plan are people in renting accommodation or living with parents/friends.

No it’s in Kent, we both live with our parents at the moment which is why we don’t mind buying off plan for next year.

PasturesNew

This is not how it works.
This is not the house for you.

You will not be able to get a mortgage for a date so far in the future .... they are time-limited.

When you exchange you are LEGALLY OBLIGED to buy it, at the price set. No wavering, no delays, buy it the day they say you can complete. That's a HUGE risk even for somebody having to wait 3-4 months.... as mortgage offers can run out, jobs can be lost, couples can split up, major life traumas can occur.

The world doesn't work in the way you wish it to. It doesn't work in that way because it's not practical.

You cannot buy this house, like that, so far in the future.