Grounds for Complaint?

Look_Behind

We recently moved into a new build property. We spoke to a broker in January and submitted a mortgage application to Halifax, paying the £100 valuation fee, and we were given an offer that expired on 30th June. From the get-go we were informed by the builder that the house had an expected build completion date between June and August. As the build progressed, it became evident that the house would not be finished until later in that date range, if not after. We subsequently submitted another application using the same broker to Nationwide. This was because Halifax was unwilling to extend; unsurprising as interest rates had gone up.

Should we have been offered a more suitable mortgage with a longer expiry date? Is that possible? Do mortgage lenders cater to longer offers for new builds? We frankly feel let down by the broker as the mortgage offer from the get-go was unsuitable for our situation. Not only did we pay the £100, which was a waste of money, but we also had to make another application for a higher rate. The application process is hardly fun. Do we have grounds for a complaint with the broker? 

Fortunately, we are in the house now, so we arent having to make a third application. So I understand it could be worse! Especially with what's going on with BoE rates.

K_S

@look_behind Based on the very limited info in your post, if you did tell the broker that the expected completion date was between June-August, your broker should have recommended Halifax's new-build product which comes with around 12 months validity. It would probably be slightly more expensive than the non new-build product, but with a much longer validity.

For example if you applied for a Halifax new-build purchase mortgage tomorrow, the offer would have a 'complete-by' date of 30/09/2023.

If you applied for a Halifax non-new-build one, the 'complete-by' date of the offer would be 31/03/2023.

Of course, there might have been other lenders' new-build products as well that would allow you to keep the rate for longer than 6 months (eg: NatWest 6+3+3, Barclays 6+6, etc.). Factoring in the expected completion date (and reasonable delays) is extremely important when it comes to recommending a lender/product to buy a new-build property.

Look_Behind said:

We recently moved into a new build property. We spoke to a broker in January and submitted a mortgage application to Halifax, paying the £100 valuation fee, and we were given an offer that expired on 30th June. From the get-go we were informed by the builder that the house had an expected build completion date between June and August. As the build progressed, it became evident that the house would not be finished until later in that date range, if not after. We subsequently submitted another application using the same broker to Nationwide. This was because Halifax was unwilling to extend; unsurprising as interest rates had gone up.

Should we have been offered a more suitable mortgage with a longer expiry date? Is that possible? Do mortgage lenders cater to longer offers for new builds? We frankly feel let down by the broker as the mortgage offer from the get-go was unsuitable for our situation. Not only did we pay the £100, which was a waste of money, but we also had to make another application for a higher rate. The application process is hardly fun. Do we have grounds for a complaint with the broker? 

Fortunately, we are in the house now, so we arent having to make a third application. So I understand it could be worse! Especially with what's going on with BoE rates.

Look_Behind

K_S said:

@look_behind Based on the very limited info in your post, if you did tell the broker that the expected completion date was between June-August, your broker should have recommended Halifax's new-build product which comes with around 12 months validity. It would probably be slightly more expensive than the non new-build product, but with a much longer validity.

For example if you applied for a Halifax new-build purchase mortgage tomorrow, the offer would have a 'complete-by' date of 30/09/2023.

If you applied for a Halifax non-new-build one, the 'complete-by' date of the offer would be 31/03/2023.

Of course, there might have been other lenders' new-build products as well that would allow you to keep the rate for longer than 6 months (eg: NatWest 6+3+3, Barclays 6+6, etc.). Factoring in the expected completion date (and reasonable delays) is extremely important when it comes to recommending a lender/product to buy a new-build property.

Look_Behind said:

We recently moved into a new build property. We spoke to a broker in January and submitted a mortgage application to Halifax, paying the £100 valuation fee, and we were given an offer that expired on 30th June. From the get-go we were informed by the builder that the house had an expected build completion date between June and August. As the build progressed, it became evident that the house would not be finished until later in that date range, if not after. We subsequently submitted another application using the same broker to Nationwide. This was because Halifax was unwilling to extend; unsurprising as interest rates had gone up.

Should we have been offered a more suitable mortgage with a longer expiry date? Is that possible? Do mortgage lenders cater to longer offers for new builds? We frankly feel let down by the broker as the mortgage offer from the get-go was unsuitable for our situation. Not only did we pay the £100, which was a waste of money, but we also had to make another application for a higher rate. The application process is hardly fun. Do we have grounds for a complaint with the broker? 

Fortunately, we are in the house now, so we arent having to make a third application. So I understand it could be worse! Especially with what's going on with BoE rates.

Thanks for getting back. It was clear from the start that it was a new build, and while I can't specifically remember saying the estimated completion dates. It surely should or would have been asked for, and I would have said the dates I had been given buy the builder. I wouldn't have just made them up. My phone automatically records all calls so I may have to go back and listen. 

I suppose the root of the question was if lenders offered more suitable products, which you have answered. Thank you

Look_Behind

To add. Had I been made aware, and have been offered a longer offer at the cost of a higher rate. I would have most likely taken it as I am risk averse. Which made the whole thing that much more of a kick in the teeth!