We’d like to remind Forumites to please avoid political debate on the Forum.
This is to keep it a safe and useful space for MoneySaving discussions. Threads that are – or become – political in nature may be removed in line with the Forum’s rules. Thank you for your understanding.
📨 Have you signed up to the Forum's new Email Digest yet? Get a selection of trending threads sent straight to your inbox daily, weekly or monthly!
The Forum now has a brand new text editor, adding a bunch of handy features to use when creating posts. Read more in our how-to guide
Exchange of Contracts: Questions Around Deposit and Mortgage
Stephahkneee89
Posts: 8 Forumite
Hey there!
So I'm a FTB and I'm using the Help to Buy scheme: equity loan.
I told the developer that I can't withdraw from my Lifetime ISA until the end of May, as it is hasn't been open for a year and if I do withdraw from it, I will not get the bonus plus I will incur 25% fee. As I have already placed the reservation fee and you have to exchange contracts within 28 days, today the developer agreed for me to transfer a sum of money from my other savings accounts and then transfer the rest of from Lifetime ISA at the end of May. The EA told me (before I placed the reservation fee) that I could wait until end of May, so that was a bit naughty!
However, I feel really confused again, as I realise that lenders will want to be transferred a full amount on the exchange of contracts, or do the solicitors hold the money until I move into the property, and then they transfer the deposit to the mortgage lender? The new build will most likely won't be ready until summer time (so around July or August, I believe).
Just another quick question: The place I'm moving into was originally an office building and now being converted into a residential building. My Mortgage broker informed me as it used to be an office, a lot of lenders will most likely reject me on that basis. I looked online and it's mostly around potential cladding issues, offices from the 1960s and small flat spaces, although the flat I reserved is actually quite spacious. The building doesn't seem very old, maybe 10 years old? He has found Santander for me, but he's going to do more research for me and then call me back tomorrow. I just wondered if this means there will be potential issues in selling property in the future? I plan to stay there for 5 to 6 years and then I will look to sell the property.
Thank you for reading. I feel like typical naive first time buyer so far!
So I'm a FTB and I'm using the Help to Buy scheme: equity loan.
I told the developer that I can't withdraw from my Lifetime ISA until the end of May, as it is hasn't been open for a year and if I do withdraw from it, I will not get the bonus plus I will incur 25% fee. As I have already placed the reservation fee and you have to exchange contracts within 28 days, today the developer agreed for me to transfer a sum of money from my other savings accounts and then transfer the rest of from Lifetime ISA at the end of May. The EA told me (before I placed the reservation fee) that I could wait until end of May, so that was a bit naughty!
However, I feel really confused again, as I realise that lenders will want to be transferred a full amount on the exchange of contracts, or do the solicitors hold the money until I move into the property, and then they transfer the deposit to the mortgage lender? The new build will most likely won't be ready until summer time (so around July or August, I believe).
Just another quick question: The place I'm moving into was originally an office building and now being converted into a residential building. My Mortgage broker informed me as it used to be an office, a lot of lenders will most likely reject me on that basis. I looked online and it's mostly around potential cladding issues, offices from the 1960s and small flat spaces, although the flat I reserved is actually quite spacious. The building doesn't seem very old, maybe 10 years old? He has found Santander for me, but he's going to do more research for me and then call me back tomorrow. I just wondered if this means there will be potential issues in selling property in the future? I plan to stay there for 5 to 6 years and then I will look to sell the property.
Thank you for reading. I feel like typical naive first time buyer so far!
0
Comments
-
If the seller agrees a smaller deposit on exchange of contracts, it means you have to pay the remainder of the deposit in time for completion (the day you get your keys) as that goes with the mortgage advance to the sellers solicitors.
Lenders change criteria, what is good now may not be acceptable in a year. Buildings get converted from one to another all the time. Without knowing what property you're looking at, no one can say either way.Mortgage started 2020, aiming to clear 31/12/2029.0 -
This has danger written all over it.
How much have you already paid and what have you signed ?
Have you got a solicitor and spoken to them ?
You may find it very difficult to get a mortgage ?
What type of property, cladding, number of floors, Flat ? Size m2 , bedroom, or bedrooms ? Bathroom, kitchen and living space.
A link to the development might help.0
Confirm your email address to Create Threads and Reply
Categories
- All Categories
- 354.6K Banking & Borrowing
- 254.5K Reduce Debt & Boost Income
- 455.5K Spending & Discounts
- 247.5K Work, Benefits & Business
- 604.3K Mortgages, Homes & Bills
- 178.6K Life & Family
- 261.9K Travel & Transport
- 1.5M Hobbies & Leisure
- 16.1K Discuss & Feedback
- 37.7K Read-Only Boards