New built exchange and completion

Vp0007

Hello, 

I hope you can help me. I am in the process of purchasing a new built but the building has not yet been completed (due to be completed next month), so completion is on notice. We will get 10 days notice once the building is completed to proceed with completion. If we decide to exchange now, do we have to pay anything now, or do we not pay anything until notice is served?

I've asked the solicitors but while I await for their response I thought I would ask here too. 

Thanks for your help. 

kingstreet

You pay your deposit ahead of exchange of contracts. The mortgage won't start until completion so that's the point you start paying interest.

JustMe18

I am in the same position. My solicitor doesn't want to exchange on notice. House will be ready on the 10th of July.

Vp0007

JustMe18 said:

I am in the same position. My solicitor doesn't want to exchange on notice. House will be ready on the 10th of July.

So how will it work for you? Your solicitor wants you to exchange now and wants you to start paying your mortgage before the house is completed?

MWT

Vp0007 said:

JustMe18 said:

I am in the same position. My solicitor doesn't want to exchange on notice. House will be ready on the 10th of July.

So how will it work for you? Your solicitor wants you to exchange now and wants you to start paying your mortgage before the house is completed?

As kingstreet already explained, exchange triggers the deposit payment, the mortgage does not begin until completion.

Things are bit more nuanced in the case JustMe18 mentions as their builder is not willing to exchange on the basis of a July 10th completion and wants to remain uncommitted to a date until they give notice, but the mortgage offer is due to expire not long after the 10th so the solicitor wants to get the offer extended if there is to be an exchange with completion on notice (which is sensible for safety).

JustMe18

Vp0007 said:

JustMe18 said:

I am in the same position. My solicitor doesn't want to exchange on notice. House will be ready on the 10th of July.

So how will it work for you? Your solicitor wants you to exchange now and wants you to start paying your mortgage before the house is completed?

No, in the end solicitor agreed to exchange on notice, but was waiting until the Plot is signed off, after this developer gave us notice of 10 days, so we are now completing on 24th. We didn't pay anything though, because our deposit comes from the sale of our current house, but I guess you have to pay it.