Protecting deposit between exchange and completion

[Deleted User]

Danz123 wrote: »

Thanks, very useful to know. Do we have to submit our documentation all over again or is this an internal exercise? Will we be credit checked again? And importantly - how long are the extensions they give?

I haven't done with them for ages but from what it reads it's exactly the same as a brand new application but without having to rekey the case so it would make sense for them to give another 6 months. If its less than 6 months you'd be just as well getting broker to do a new application anyway. Get your broker to give them a quick call and ask how long extended for

Our mortgage offers are valid for six months from date of issue or
up to the product completion deadline, whichever comes first. We
will consider an extension subject to the following:
¡ Any necessary supporting documentation is updated
and resubmitted.
¡ We are notified of any change in circumstances.
¡ The case is re-decisioned and remains acceptable to Santander
in line with our current mortgage lending policy.
¡ A new credit search and affordability assessment.
¡ A new product must be selected.
¡ An updated property valuation.

eddddy

Deleted_User wrote: »

We will consider an extension subject to the following:
¡ Any necessary supporting documentation is updated
and resubmitted.
¡ We are notified of any change in circumstances.
¡ The case is re-decisioned and remains acceptable to Santander
in line with our current mortgage lending policy.
¡ A new credit search and affordability assessment.
¡ A new product must be selected.
¡ An updated property valuation.

I'm not sure I would take that level of risk - especially:

Deleted_User wrote: »

¡ An updated property valuation.

If property prices slip - and the valuation is reduced by, say, £25k.

Either...

• I need to find an extra £25k in cash

or

• I back out and the developer sells to somebody else for £25k less and sues me for for £25k

FTBAngst

Friends nearly bought a new build. The broker discussed the risk of change in valuation but that risk was mitigated by having a big deposit. So they still would be ‘over paying’ for the house but wouldn’t lose their deposit for that reason.

Where is build up to? My friends were initially told the house would be done in March. Reservation was in October, pressured by developers to exchange was never ending, the build started in December, options had to be chosen and paid for by January etc! It’s almost July and the house still isn’t ready...