New build home - pulling out and getting reservation fee refunded?

Smeags

Hi,
Just yesterday, (Friday), I paid a £500 reservation fee on a new build house. I signed a form, and it was marked as using the help to buy scheme.
Now, I am thinking about (and leaning towards) backing out of the deal, on Monday.

Can anyone advise, how much of the £500 should I be able to get refunded? When we asked on Friday, we were told we would get half back if we backed out. But having read this thread, on the very last post on there, someone says "Under the Help to Buy contract, the developer needs to refund the maximum £500 reservation fee if the buyers is not eligible for Help to Buy or is unable to obtain a mortgage.": https://forums.moneysavingexpert.com/discussion/5718417/new-build-home-reservation-fee-and-potential-rogue-traders/p3. So I'm unsure if I'll be due a full refund since I'm help to buy? Although wouldn't be backing out because of being unable to get a mortgage, like this poster says. Is there a cooling off period?

I had an appointment with them booked in on Friday morning, and had decided in the week I was going to reserve one of these homes. On Thursday night, I discovered that the builders of this development, Belmont Homes, appeared on BBC Rogue traders in 2018! And had another appearance on BBC Watchdog in 2012. I ended up reserving one anyway, because it looks like my dream home! But now, I can just not stop worrying, therefore, I've been advised by friends and family that I should pull because I've got no peace of mind. They say I should be feeling excited right now. But I'm not - I just feel nervous, agitated, and panicky.

Thanks.

Thrugelmir

If you simply pull out then appears to be 50%.

johnny_c-l

You can probably just read what you signed to find this out. It sounds like, assuming you're HTB eligable, it's just £250 you'd lose.

NatalieAGC

Changing your mind will mean 50% returned as you have yet to apply for HTB and wil no doubt be eligible for it so can’t use it as an excuse to reclaim it all back. 

Sounds like you acted first and thought second  to already be in doubt so soon.  

blue_max_3

I know it seems like a lot of money, but in the scheme of things, it really isn't. Wasted surveys and legal fees can cost thousands if you're unlucky. The company sound dreadful and better to lose a little now than get involved with a nightmare.
Having said that, I'm sure there are horror stories from any house builder.