First Time Buyer - New build

Jenna_

Hi 
I am looking at reserving a property as I understand it I would go through the mortgage off when the property is released at this point I have 5% deposit on the property I would like to reserve.( I am using Scotland’s HTB firsthome fund on top of this). However as the property won’t be build until 6-9months I will have at least a 10% deposit by then. My question is when I reserve and go through the mortgage offer can will I have to give the 5% value I have? Or can I give the anticipated amount nearer completion? If I can only give what I physically have, can I then amend my mortgage application when I have a bigger deposit ? 

Any help would be greatly appreciated! 

Thanks!

Carl2510

They will go off what you have now. As no-one can predict what you’ll have in months ahead. You could change you application but it would probably mean going through the whole process again.

annetheman

I have also moved up LTV (10 months since reserved property, delayed due to EWS1 rather than COVID!) but decided it was too much kerfuffle and I would miss stamp duty window if I didn't proceed with original application.
I've instead decided to save the additional deposit for overpayments and remortgaging at the end of the fixed term. I think rates will still be low then and don't want to risk them changing their decision to lend to me/let me reserve and buy! Unlikely they would but why risk it IMO

Jenna_

An I see !! How much would it delay by? as a first time buyer I’ve not a clue what happens lol that’s good to know though. I am buying through bellway I’m hoping they release more towards the 6 month prior to completion than the 9 months !  

Carl2510

Jenna_ said:

An I see !! How much would it delay by? as a first time buyer I’ve not a clue what happens lol that’s good to know though. I am buying through bellway I’m hoping they release more towards the 6 month prior to completion than the 9 months !  

Could be weeks could be months, plus you wouldn’t be guaranteed the same interest rate and I can’t imagine the developer being to happy you changing your mind on the mortgage considering they expect everything to be done and dusted within 28 days for exchange. 

Jenna_

It’s such a his between reserving and completion I imagine they would have that a lot but spoken with someone else who’s said the mortgages offer doesn’t need to be done at reservation stage so that’s good! 

dimbo61

So make sure your prepared !
When they ask you who is your solicitor be ready ? 
Speak to family and friends and find a good local firm of solicitors who are on  the panel with your lender.
Don't go for the builders recommend solicitor who may want repeat business from the builders rather than acting in your best interests.
Have you got a LISA or help to buy ISA ?
Have you picked the house type and plot ?
Got your passport, driving licence, wage slips, bank statements for proof of deposit.

Carl2510

Jenna_ said:

It’s such a his between reserving and completion I imagine they would have that a lot but spoken with someone else who’s said the mortgages offer doesn’t need to be done at reservation stage so that’s good! 

Suppose it depends who the developer is some may not be bothered if there not selling fast but if some are then they’ll expect it to be done ASAP. Mine did. 

Jenna_

dimbo61 said:

So make sure your prepared !
When they ask you who is your solicitor be ready ? 
Speak to family and friends and find a good local firm of solicitors who are on  the panel with your lender.
Don't go for the builders recommend solicitor who may want repeat business from the builders rather than acting in your best interests.
Have you got a LISA or help to buy ISA ?
Have you picked the house type and plot ?
Got your passport, driving licence, wage slips, bank statements for proof of deposit.

Hi

thanks! Yes we have picked a development and house type with plot and waiting for it to be released. Interesting point about the mortgage person recommended I will have a look for others! I’ve got a LISA. 

Gem_M90

Hi, 
First Time buyer of a new build, also in Scotland and also using the help to buy scheme (which is different up here than it is in England so some advice might not be accurate for Scotland).
When you reserve, they will expect you to have a mortgage offer in place soon after and have a solicitor appointed to work towards signing the missives. When you apply for the help to buy and your mortgage, you'll have to state the deposit amount you'll have now. Not sure of Bellway procedures, but my builder asked me to show evidence of the deposit money as did Halifax. 
If you'll have more savings by the time you complete on your house you could always use it to pay off a portion of the help to buy or make overpayments to your mortgage 😊

Jenna_

Gem_M90 said:

Hi, 
First Time buyer of a new build, also in Scotland and also using the help to buy scheme (which is different up here than it is in England so some advice might not be accurate for Scotland).
When you reserve, they will expect you to have a mortgage offer in place soon after and have a solicitor appointed to work towards signing the missives. When you apply for the help to buy and your mortgage, you'll have to state the deposit amount you'll have now. Not sure of Bellway procedures, but my builder asked me to show evidence of the deposit money as did Halifax. 
If you'll have more savings by the time you complete on your house you could always use it to pay off a portion of the help to buy or make overpayments to your mortgage 😊

Hi gem thanks so much! X