Mortgage for a new build when completion is more than 6 months away

LittleTennisLover

Hello. My partner and I have had an offer accepted on a new build property which is due to be completed in October/November this year. 

The developer has put an exchange date at mid-March but our mortgage broker is saying that if we apply for a mortgage now, we will likely have to reapply after the six months expires (he said most lenders would only grant extensions for a week or two if it was apparent completion is imminent).

If we applied for a mortgage now and then had to reapply in six months time, will that likely cause any financial problems for us? I would add as well, we had previously had a mortgage offer agreed in August 2021 which is due to expire shortly as we pulled out of the property we had offered on then as the sellers still to this day have not found an onward purchase. 

I'm just worried that constantly getting mortgage offers (potentially 3 in a 12-14 month period) will have a negative impact on our financial/credit rating. 

Does anyone have experience of dealing with similar issues?

I should add as well, we recently sold our flat and are currently living with family currently, so we have our deposit in the bank and would only need a mortgage for 50% of the purchase price. 

Thanks in advance. 

kingstreet

Not an experienced newbuild broker then?

There are a few nine month or twelve month newbuild offer lenders and a few who do six months + six months extensions for newbuild.

lantanna

I have the exact same issue as yourself, I have an offer with Nationwide who will extend for 45 days which will cover me. I think NatWest do a 6 month extension

LittleTennisLover

lantanna said:

I have the exact same issue as yourself, I have an offer with Nationwide who will extend for 45 days which will cover me. I think NatWest do a 6 month extension

Yes I've just looked on NatWest's website and there are certainly forms for new build mortgage offer extensions. Our previous mortgage offer in August 2021 for the abortive purchase was from Natwest so I'm hoping that we would be able to get another with them as this mortgage would be for less money.