To mortgage, or not to mortgage...?

RossLoughnane

Hi all,

Really hoping you can help. 
My partner and our are both first time buyers. We have reserved a new build property. (We're using Help to buy equity loan). The building developer has said they're happy to wait until things go back to 'normal' before processing deposits etc. The house isn't due to be finished until at least September ... (More likely December).

I had an email this morning from our mortgage broker who is asking us for various bits of information to progress with applying for a mortgage. (We have an agreement in principle at the moment). I'm aware that most banks etc have reduced/stopped new mortgage applications. He has said we can apply now as mortgage offers are currently valid for 9 months.

My concerns are:
Are we getting the best deal applying now when our main options are NatWest or Nationwide? 
Are we better off waiting until nearer the time and applying when more options are available? 
On the flipside, is it a good time to apply because these providers are offering better deals to lure people in?
Is it worth going through the application to see what we get? 

Sooooo many questions! 

Thank you all! 

dimbo61

Most mortgage offers only last 6 months. So we are now in April and it could be 8/10 months before the property is ready.
Keep saving and hope things get better

[Deleted User]

My concerns are:

Are we getting the best deal applying now when our main options are NatWest or Nationwide? 
Are we better off waiting until nearer the time and applying when more options are available? 
On the flipside, is it a good time to apply because these providers are offering better deals to lure people in?
Is it worth going through the application to see what we get?

1.  Why are Nationwide or Natwest your only options?  
2. No harm in waiting as long as you know you can get the finance sorted and you arent spending money that you would lose if a  mortgage doesnt get approved
3.  Lenders are increasing rates at the moment.  No one is trying to lure business in, most are doing all they can to avoid more business at the moment
4.  Maybe go to application, get a mortgage secured, and then revisit in 3 or 4 months to see if any better options have come up.  The broker who is arranging it should be going to lenders who are good at new builds, some of them can give a 6 month offer extension without any real issues.  

RossLoughnane

Deleted_User said:

My concerns are:

Are we getting the best deal applying now when our main options are NatWest or Nationwide? 
Are we better off waiting until nearer the time and applying when more options are available? 
On the flipside, is it a good time to apply because these providers are offering better deals to lure people in?
Is it worth going through the application to see what we get?

1.  Why are Nationwide or Natwest your only options?  
2. No harm in waiting as long as you know you can get the finance sorted and you arent spending money that you would lose if a  mortgage doesnt get approved
3.  Lenders are increasing rates at the moment.  No one is trying to lure business in, most are doing all they can to avoid more business at the moment
4.  Maybe go to application, get a mortgage secured, and then revisit in 3 or 4 months to see if any better options have come up.  The broker who is arranging it should be going to lenders who are good at new builds, some of them can give a 6 month offer extension without any real issues.  

Thanks! 
We were originally going with Halifax. We have been told by the banks and broker that most banks are stopping new applications or making it so you need a 40% deposit. 

Thank you for the tips though. I will definitely take them on board! 

mard3010

We got our offer on Monday dated 7/03 with 85% ltv and it is valid until March 2021. With halifax, we applied on 10th March 

csgohan4

mard3010 said:

We got our offer on Monday dated 7/03 with 85% ltv and it is valid until March 2021. With halifax, we applied on 10th March 

Your in a different position, it was done before the lockdown and alot of lenders have pulled their products

Halifax for you may not mean it is good for someone else.