Is my deposit protected?

Nevemulhall

I have had an offer accepted on a house, however the people that live there have bought a new build so we wont be able to move in until around November 2022, we knew this and this worked for us as a young couple first time home buyers. The issue is they have part exchanged with their builder so it is the builder we are buying this from. They want us to exchange contracts within 28 days so that means giving our 10% deposit. However, as it wont be ready until November the decision in principle we have is for nationwides helping hand mortgage the offer will run out in 6 months and thee will be another 4 months left so we definitely wont be able to get it extended for that long, if at this point nationwides helping hand mortgage doesnt exist or if mortgage rates have changed massively and we can no longer get the mortgage does this mean that we would lose our deposit? We absolutely love the house and are willing to wait till november or even longer for it but we are not willing to risk losing our 10% deposit that we have spent years saving for, would the solicitor need to add a clause to the contract that says if we cannot get our mortgage offer extended or are not successful when re applying that this exchange would fall through and we would get our deposit back because no mortgage lender can guarantee an offer for 10 months? or should the building company be willing to wait longer before exchanging contracts? but then that leaves us open to losing the house...

Looking for advise

[Deleted User]

If you exchange, you're committed to buy. You'll lose your deposit and also be liable for any other costs .

canaldumidi

Find another property.

sammyjammy

Wow really bad timing to enter into such a commitment, who knows where the world will be by then.

steampowered

New builds are often delayed.

You could ask your conveyancer to add a clause to the contract which says you are entitled to withdraw from the contract if you cannot obtain a mortgage. However interest rates are going up so who knows what that means.

diego_94

Don't exchange that early. Pull out and find another house. Chances are that the seller will have a problem with the next buyer and the next and the next as no one in their right mind will exchange that early.