Can we delay our mortgage application for a new build reservation?

Mrsjy

Hi,
So we reserved a new build plot...our plan was to use Vida Homeloans when it came to putting in our mortgage application (developer has said around end of dec/January) But now Vida have pulled their help to buy products.

We’ve spoke to a few different brokers and all say the same thing..the only real option at the minute is bluestone (crazy rates) Our credit history is terrible...but in March all defaults will be over 2 years old which seems to open the doors to more lenders (precise, kensington, aldermore) Which are a hell of a lot lower with their rates compared to bluestone. So we were wondering if theres any way of delaying the builder until then. I can’t ask the developer because they will obviously just say no, we did mention to them that our rate will be alot better the longer we get before starting the mortgage application in and they said we will see closer to the time, but i’m pretty sure they won’t just agree to wait until March.

Do we just let the house go, and just see whats available after March? We have searched for the last few years and this plot is perfect for us, the location is perfect, the size, the price. I do think we will struggle to find anything close to it 😔

Thank you

emma_829

Mrsjy said:

Hi,
So we reserved a new build plot...our plan was to use Vida Homeloans when it came to putting in our mortgage application (developer has said around end of dec/January) But now Vida have pulled their help to buy products.

We’ve spoke to a few different brokers and all say the same thing..the only real option at the minute is bluestone (crazy rates) Our credit history is terrible...but in March all defaults will be over 2 years old which seems to open the doors to more lenders (precise, kensington, aldermore) Which are a hell of a lot lower with their rates compared to bluestone. So we were wondering if theres any way of delaying the builder until then. I can’t ask the developer because they will obviously just say no, we did mention to them that our rate will be alot better the longer we get before starting the mortgage application in and they said we will see closer to the time, but i’m pretty sure they won’t just agree to wait until March.

Do we just let the house go, and just see whats available after March? We have searched for the last few years and this plot is perfect for us, the location is perfect, the size, the price. I do think we will struggle to find anything close to it 😔

Thank you

To be honest, delaying a house builder is hard work and they only really delay if there are valid reasons e.g. delays not on the buyers part. If you can’t apply until after the defaults are removed your not going to be ready to exchange until some weeks after this. 

You’d also need to instruct a solicitor fairly quickly or they will put the property back on the market after 28 days when the reservation period ends. If you instruct a solicitor they will need a deposit and will likely start the legal work and searches which costs more money and is a further loss on top of the reservation fee if the developer re lists the property. They’re going to want broker details and will likely chase the broker who will tell them you’re delaying applying, which again will go against you. Your only benefit would be if the completion is delayed, but even then they will want it exchanged on notice within 28 days of the reservation as they will want the deposit paid to them. 

If the development is popular and they have other buyers ready and willing to proceed and the property is build complete, I’d say you have very little hope of delaying them. There is very little chance you have of getting a developer to delay when they have a property ready to complete and others interested as these funds are likely earmarked to complete other phases. As they have deadlines to meet delaying the funds from completing this property could delay other properties being finished. 

I’d presume it’s a question of considering whether the higher rates are going to cost more in the long run than waiting and finding a more expensive property or the personal cost of settling for a property later down the line that doesn’t quite meet your requirements. 

Mrsjy

emma_829 said:

Mrsjy said:

Hi,
So we reserved a new build plot...our plan was to use Vida Homeloans when it came to putting in our mortgage application (developer has said around end of dec/January) But now Vida have pulled their help to buy products.

We’ve spoke to a few different brokers and all say the same thing..the only real option at the minute is bluestone (crazy rates) Our credit history is terrible...but in March all defaults will be over 2 years old which seems to open the doors to more lenders (precise, kensington, aldermore) Which are a hell of a lot lower with their rates compared to bluestone. So we were wondering if theres any way of delaying the builder until then. I can’t ask the developer because they will obviously just say no, we did mention to them that our rate will be alot better the longer we get before starting the mortgage application in and they said we will see closer to the time, but i’m pretty sure they won’t just agree to wait until March.

Do we just let the house go, and just see whats available after March? We have searched for the last few years and this plot is perfect for us, the location is perfect, the size, the price. I do think we will struggle to find anything close to it 😔

Thank you

To be honest, delaying a house builder is hard work and they only really delay if there are valid reasons e.g. delays not on the buyers part. If you can’t apply until after the defaults are removed your not going to be ready to exchange until some weeks after this. 

You’d also need to instruct a solicitor fairly quickly or they will put the property back on the market after 28 days when the reservation period ends. If you instruct a solicitor they will need a deposit and will likely start the legal work and searches which costs more money and is a further loss on top of the reservation fee if the developer re lists the property. They’re going to want broker details and will likely chase the broker who will tell them you’re delaying applying, which again will go against you. Your only benefit would be if the completion is delayed, but even then they will want it exchanged on notice within 28 days of the reservation as they will want the deposit paid to them. 

If the development is popular and they have other buyers ready and willing to proceed and the property is build complete, I’d say you have very little hope of delaying them. There is very little chance you have of getting a developer to delay when they have a property ready to complete and others interested as these funds are likely earmarked to complete other phases. As they have deadlines to meet delaying the funds from completing this property could delay other properties being finished. 

I’d presume it’s a question of considering whether the higher rates are going to cost more in the long run than waiting and finding a more expensive property or the personal cost of settling for a property later down the line that doesn’t quite meet your requirements. 

Thank you so much for that reply it was very helpful.

The plot is at around stage 6 and we were told an estimated completion of around june-july. Thats why they don’t need us to put our application in instantly. But it is a very popular site. The main issue is the help to buy cap, this house sits literally a few pounds under the new cap, so any other 4 beds released on that site (they are only a couple more future 4 bed plots) they are expecting to be over the cap. 

Thanks again, it was a big help!

Thrugelmir

The developer isn't going to wait months unfortunately. They'll want the plot sold ASAP. 

AW1980

Mrsjy said:

Hi,
So we reserved a new build plot...our plan was to use Vida Homeloans when it came to putting in our mortgage application (developer has said around end of dec/January) But now Vida have pulled their help to buy products.

We’ve spoke to a few different brokers and all say the same thing..the only real option at the minute is bluestone (crazy rates) Our credit history is terrible...but in March all defaults will be over 2 years old which seems to open the doors to more lenders (precise, kensington, aldermore) Which are a hell of a lot lower with their rates compared to bluestone. So we were wondering if theres any way of delaying the builder until then. I can’t ask the developer because they will obviously just say no, we did mention to them that our rate will be alot better the longer we get before starting the mortgage application in and they said we will see closer to the time, but i’m pretty sure they won’t just agree to wait until March.

Do we just let the house go, and just see whats available after March? We have searched for the last few years and this plot is perfect for us, the location is perfect, the size, the price. I do think we will struggle to find anything close to it 😔

Thank you

Hi, we’re in the process of purchasing with a developer and I’d be doubtful they’d wait. They like updates every few days