Mortgage set to expire before new build completion date.

rocknrollking

Hi, thank you everyone any help is greatly appreciated.

Our mortgage offer on our new build house is set to expire on the 9th September however our house isn't set to be ready until the end of the month. We applied for our second extension for the mortgage offer and this hasn't been granted. The completion date of the house is 30th September although the house isnt too far from being ready. The delay has been due to the lock down and the site being closed for months. I was wondering is there any way to purchase the property before it is complete. Looking online if we reapply for our mortgage we would be paying out roughly £40 more each month and will potentially have to contribute more to the deposit.

[Deleted User]

No. Your lender won't want to advance you the full amount for half a house.

Look for alternatives and delay exchange until you have something in place and are confident of completion.

rocknrollking

Thank you zx81, I think we will just have to take the hit. It is so unfortunate as it will cost around £3k more it is only a matter of weeks and the house is almost complete with only the external work needing completing (garden, drive etc). Speaking to the builder at lunch time he seemed to think it was doable with the money drawn down on the 9th although him explaining the process was very complicated. It is just such a shame. I am awaiting my broker to come back to me and my solicitor. 

rocknrollking

The builder explained a process were my solicitor drew down the money on the 9th and either held it for the 7 days or exchanged with the builders solicitor who holds the money. It all sounded a complicated mess. We arent in a rush to move into the property its just unfortunate the mortgage offer expires so soon to the completion date. The solicitor has written to the builder's solicitor asking if the completion date can be moved to the 9th September however its difficult to see how the house could be completed within a week. Is it possible for some work to be outstanding or does the house need to be 100%, the builder mentioned of a certificate. To be honest it all got lost on me 

rocknrollking

Just an update, we all looking to see if the house can be at a level we can purchase on 9th. The solicitor is exploring this and its all going to be extremely tight. We are happy for the builder to finish the property at the end of September and are in rush to move in. By the end of the week the house will be fully linked to services and bathroom and kitchen fully fitted. The final check from the bank will take place on the house hopefully start of next week. Hopefully when he comes out they are just finishing the outside and doing the painting. Kinda desperate to take up this mortgage as speaking to the broker it will be hard to get a new mortgage due to only 15% deposit being available on new builds and worse rates. Been a stressful few days

kingstreet

Completion can't take place until the property has been signed off and the NHBC (or equivalent) cover note issued. You really need your solicitor handling this as they are acting for the lender as well as for you and will know exactly what they can and can't do.

rocknrollking

Some good news!!! We were able to complete the sale before the offer expired!!! such a relief from a stressful few days. My solicitor is currently drawing down the money and I am sending over the deposit tomorrow. The completion date was able to be moved forward to the 8th September in keeping with our offer that expires on the 9th. The house wont be ready until the 30th September though (might be ready a week earlier).

Brandylover88

This is great news! Congratulations