exchanging without mortgage offer?

robinson4012

Is it ok to instruct my solicitor to exchange contracts (subject to necessary checks etc) without the mortgage offer? Or is this an absolute NO NO?

Its a new build (converted warehouse), buying off plan with completion due end 2009/early 2010. We have had offer agreed in principle from our current mortgage provider. As completion is so far off and mortgage offer only valid for four months, it was agreed with C&G that we would make contact four months before completion in order to arrange/finalise mortgage (we will also shop around for best deal nearer completion).

Exchange deadline was 21 March so developers EA keen to get it sorted even though they are aware that delays have been due to developers side. I have the deposit ready and waiting to be transferred when I get the all clear from my solicitor who has at the beginning of this week received all answers to enquiries and is currently going through them to check all ok.

So I wanna know if I can exchange without formal mortgage offer and set up mortgage nearer to completion? That way I don't have regular credit checks to renew mortgage offer every four months and I avoid paying more than one valuation fee, because I think I would have to pay for one now and then again nearer completion if I obtain better deal from another mortgage provider.

Thanks in advance

tr3mor

You're either trolling or completely insane.

:money:

chappers

robinson4012 wrote: »

Is it ok to instruct my solicitor to exchange contracts (subject to necessary checks etc) without the mortgage offer? Or is this an absolute NO NO?

Its a new build (converted warehouse), buying off plan with completion due end 2009/early 2010. We have had offer agreed in principle from our current mortgage provider. As completion is so far off and mortgage offer only valid for four months, it was agreed with C&G that we would make contact four months before completion in order to arrange/finalise mortgage (we will also shop around for best deal nearer completion).

Exchange deadline was 21 March so developers EA keen to get it sorted even though they are aware that delays have been due to developers side. I have the deposit ready and waiting to be transferred when I get the all clear from my solicitor who has at the beginning of this week received all answers to enquiries and is currently going through them to check all ok.

So I wanna know if I can exchange without formal mortgage offer and set up mortgage nearer to completion? That way I don't have regular credit checks to renew mortgage offer every four months and I avoid paying more than one valuation fee, because I think I would have to pay for one now and then again nearer completion if I obtain better deal from another mortgage provider.

Thanks in advance

Nurse please lock this man up he obviously is insane, hopefully his solicitor will talk some sense into him or hopefully refuse to act for him.

m00m00

an off plan new build ?


Smithers, Release the hounds.

BobProperty

At the rate mortgage products are being withdrawn, there won't be any by late 2009 / early 2010.

ginvzt

Buy house now to complete early 2010??? Are we really talking here in TWO years? Do you understand, that they maybe delays, etc and it might not be finished till autumn 2010? Or not finished!!!

Do you have to pay the deposit now?

clutton_2

if you have to pay a deposit make it £1.99p

Cazza

I mainly do new build mortagages and I have had clients do exactly what you're thinking of doing. In the current market, there is no way I would do this at all; it's a very risky situation at the best of times and right now it would be nuts.

teabelly

How much are you paying and what did the developer say it would be worth in 2009/10?

Trollfever

Will the developer survive the next 6 months?