HTB mortgage process & upgrades query

brendon20ukk

HI all,

We applied through our local brokers and have gotten an AIP with both Natwest and Halifax for a mortgage of £151,720.

We are due to meet the builders on Saturday to reserve the plot. Can anyone tell me the next stages of what we will need to do just so that i'm ahead of the game.

1) I'm guessing its full application for the brokers
2) instruct solicitors?
3) brokers then submit a HTB application (or is this same time as full application)?
4) solicitors then carry out a valuation?
5) solicitors also carry out a RICS survey?
6) if all goes well mortgage accepted and contracts signed.

Does this sound about right? and if not please can you let me know and also roughly timescales I should expect each task to complete? baring in mind the broker i'm using was referred by the developer and so will the solicitor.

The plot is ready to reserve but the build will take 4-5 months. Does this mean we cant complete and exchange contracts until its built? We were hoping to use the credit card (£0 balance) to pay for upgrades and we're now wondering that we may have to use cash instead to prevent us failing in case lender runs affordability checks again half way through build stages. Can someone clarify for me?

Just to confirm total income x 4.5 is £168,560 asking for lender to mortgage us £151,720.

kingstreet

Check HCA Affordability Calculator
Obtain agreement in principle
Preliminary reservation done with builder and solicitor selected
Property information form and reservation submitted to HTB Agent
HTB - Equity Loan Authority To Proceed issued (ATP)

All the above is done in the first week.

Formal reservation completed and fee paid
Full mortgage application submitted
Lender valuation done and supporting docs submitted
Mortgage Offer issued
Solicitor submits Authority to Exchange (ATE)
Contracts exchanged with completion "on notice" when build over

All of the above is done within 28 days of ATP issue.

Property finished and kitted out to buyer's spec
Demonstration visit and snagging inspection
Notice given
Solicitor submits HTB Forms for Equity Loan release
Completion takes place, keys and money change hands and mortgage payments commence.

All of the above several months later and can be upto nine months from ATP, upto six months from ATE.