New build delayed 3 months - offer about to expire and no extension available

md64

Hi All

we reserved our new build in July, with a date for it to be ready of December.. we’ll it’s now March and our offer is expired 23rd Feb. We can’t get an extension and the rates now mean we would have to take 7%!! 

Broker has asked our builder to put it right… build is ending first fix and thank god we’re yet to exchange. 

Advice please!! What do we do in this situation, what can/will the builder do? 

HampshireH

If your haven't exchanged and they can't complete sooner it's probably time to walk away.

I doubt the builder will be able to do (inclined) to do an awful lot unless your purchase is needed to hit numbers by end of year. The majority certainly aren't reknown for bending over backwards especially when not even exchanged.

Have you viewed it recently to know what state it is in? Coming to the end of first fix could mean anything. Ideally it would mean almost done but we all know that's not necessarily the case

SusieT

You are very lucky that you have not exchanged contracts yet. If you are pushed to exchange you need to insist on a long stop date that is before the mortgage expiry date so that you can walk away without losing your booking fee. If you pull out you would most likely lose the fee, but even that is better than having no mortgage and losing the deposit as well. 
If there is no way to extend the mortgage (normally a mortgage for a new build is more flexible and will allow extension) then unless the builder changes the date it will be ready you will either need to find another mortgage, or, walk away from the house.

RelievedSheff

A 7% mortgage rate would be exceptionally high.

Is there some adverse credit involved? High street rates are certainly lower than 7%!!

pinkteapot

There's nothing you can do but keep nagging the builder and hope they get it built in time. 

If you pull out you'll have to get the higher rate on anything else you now offer on.

md64

RelievedSheff said:

A 7% mortgage rate would be exceptionally high.

Is there some adverse credit involved? High street rates are certainly lower than 7%!!

Yes we had to go with Kent because of some 3 year old defaults. The builder are doing their best to have it ready for the date needed so we may be exchanging and completing within days. 

Some stressful weeks ahead