28 day exchange and mortgage offer

Yan101 · 23 July 2019 at 7:13PM

Hi. I have scoured the threads, just cant find my exact situation so looking for a little advice. Reserved a new build off plan back in esrly june. Was told we have 28 days to exchange contracts so got on it straight away. I dont have the best credit so we went to a local broker, got a dip with kent reliance, sent off the full application and paid for the valuation. They requested some paperwork we couldnt get/cant get until next friday. The 28 day date has been and gone (1st july) weve had contracts and signed whichcour solicitor is holding until we get our offer. However the developer has now pushed the completes build date to march 2020 instead of the sept-december we were initially told. Offers from kent only last 6 months from issue. So my mortgage will run out before the build is complete. I have queried whether we can now exchange a little bit later as the development delay has caused the issue. Ive not yet had a reply. I could just re apply after exchange but this will be 1 a risk as we may not be accpeted (no real reason why not but still risky) 2 my advisor is due her fee at the time of offer and that will be payable again once we need to re apply.

Any idea if kent reliance extend offers. And if the builder (kier) will push back the exchange date?

As of now we have done all searches, valuation and aren1 peice of info away from the offer. Contracts came after the 28 day date so that was already bust by the sellers and my solicitor has queried quite a few mistakes/missing info on the contracts to which they arent in a hurry to reply to. In fact my solicitor hasnt been chased by theirs at all the past few weeks. I really dont want to lose this house over something that really wasnt in my control.

RelievedSheff · 24 July 2019 at 7:49AM

Mortgage offers can usually be extended.

It isn't uncommon for new build completion dates to be pushed back due to construction delays.

ethank · 24 July 2019 at 11:22AM

Kier will want you to exchange as quickly as possible, if you need to pay any fees to extend mortgage offer, ask them to pay for it.

Yan101 · 24 July 2019 at 1:55PM

Yea i think ill have to go for it and hope i can extend. I doubt kier will pay for anything as they have already told us the completion date is 8 months away before we get our offer. Seems silly ss weve done everything as we should yet we will lose out moneywise duento their build delay.

andyf1980 · 24 July 2019 at 9:16PM

Be very careful with this. There is no guarantee that a lender will approve your second application. If you have exchanged and can't get a mortgage you will be liable for developers costs. We had a mortgage offer with Skipton which allowed you to extend for a further 6 months without a full application. This offer expired due to delayed build dates and we then had to do a whole new application. Fortunately it was approved but it was incredibly stressful.

Yan101 · 24 July 2019 at 11:52PM

Hi. Yeah im aware its risky. But i suppise its a risk for anyone buying a new build. Even if you get a 12 month offer. Build dates can run way over and leave people in the same situation. I havent heard from my.solicitor about an exchange date as yet. Nothing is currently being chased other than the little old lady in the developments office emailed to see if we had done all searches and asked if we had a mortgage offer......cheeky woman, she emailed me.the day before to say it was delayed 6 months then has the cheek to ask about a mortgage offer.

[Deleted User] · 25 July 2019 at 9:55AM

If you are going to a lender such as Kent Reliance then it is a much bigger risk for you. Ask your broker how many other lenders will lend to you before you exchange.

If you exchange contracts and Kent change their criteria and dont offer you a new offer what is your backup plan? Youve exchanged contracts so you are buying that house or losing your deposit.

I personally wouldnt do it if i had a single lender to choose from. Fair enough if you have another 10 lenders you can approach if yours changes policy

Yan101 · 25 July 2019 at 2:09PM

Hi. there are other lenders and options. Kent just had the better interest rate at the time. Im in a good job, sub prime was my only option as i have a default on my file from 2015. Tried a few high streets who said no so the sub prime waa my only option really. Still havent heard from my solicitor re the exchange. The developements solicitors really arent chasing and they have ammendments to the contract to sort first too. Im a first time buyer so its all a learning curve. I feel like everyone involved needs to be a bit more helpful with first time buyers whatever there situation as its very daunting and alot of processes ive only learned through googling and speaking to others. This forum has been a god send at times.

rajeshk4u · 26 July 2019 at 1:18PM

We face economic uncertainty with Brexit. Given the timelines. I am not sure if the lender will pull the plug, it there are uncertainty in the market.

rajeshk4u · 26 July 2019 at 1:19PM

Is this the same company?

https://www.trustpilot.com/review/kierliving.co.uk

Yan101 · 29 July 2019 at 6:01PM

It is mate yea 😂 but i know a few people on the estate and the build quality on this development is very good. I think you get alot of negative comments when you look at reviews on anything as people only tend to leave a review in a bad experience. A friend has been in hers 6 months and there were only 2 things on her snag list. Very minor and were fixed the next day. I think it all comes down to what contractors are on the job and they all seem really good.

28 day exchange and mortgage offer

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