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  • FIRST POST
    • guysl80
    • By guysl80 13th Jun 19, 7:29 PM
    • 72Posts
    • 1Thanks
    guysl80
    How soon should we start the Mortgage Application
    • #1
    • 13th Jun 19, 7:29 PM
    How soon should we start the Mortgage Application 13th Jun 19 at 7:29 PM
    Dear all,

    We have paid a reservation fee for a property which will be completed by October.
    The property management agent introduced us to a Mortgage broker few days ago and they want us to start the mortgage applcaition straightaway. They already found Nationwide as the only lender for us and now ask us to submit the documenst asap.

    1) Since the property will be completed by October do we need to hurry up to finish the mortgage application process and secure the mortgage deal?
    2) Cant we wait for couple of months as we might recieve some more money towards the deposit from our parents.
    Also we recently paid all our debts and the credit file will take at least 2 months to get updated.
    3) Can we ask the broker to wait till august so we can start the process? Is this allowed? Is there any advantage getting the mortgage process done early?

    Cheers
Page 1
    • LRmortgage
    • By LRmortgage 13th Jun 19, 7:49 PM
    • 331 Posts
    • 156 Thanks
    LRmortgage
    • #2
    • 13th Jun 19, 7:49 PM
    • #2
    • 13th Jun 19, 7:49 PM
    I’m sure the developer will want you to exchange contracts within 28 days of you paying the reservation fee. In order to exchange, you need a mortgage offer ready and waiting.

    Otherwise, what would stop you changing your mind in August and backing out of buying the property? All you would loose is a reservation fee which is probably no more than 500 or so.
    I am a Mortgage Adviser
    You should note that this site doesn't check my status as a mortgage adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.
    • ACG
    • By ACG 13th Jun 19, 7:57 PM
    • 19,524 Posts
    • 11,094 Thanks
    ACG
    • #3
    • 13th Jun 19, 7:57 PM
    • #3
    • 13th Jun 19, 7:57 PM
    Speak to your broker about the deposit, see what they suggest.

    Tell your broker about the recently cleared debts, it is an easy one to overcome, but it should not take AT LEAST 2 months, maybe UP TO 2 months to show?

    To be honest, if it is October, it probably means December but it is not really too early to apply. The developers will also probably want exchange well before August so waiting 2 months is probably not an option.
    I am a Mortgage Adviser
    You should note that this site doesn't check my status as a mortgage adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.
    • hannahvictoria
    • By hannahvictoria 17th Jun 19, 10:09 AM
    • 17 Posts
    • 6 Thanks
    hannahvictoria
    • #4
    • 17th Jun 19, 10:09 AM
    • #4
    • 17th Jun 19, 10:09 AM
    Our house is due to be completed in October and we sorted our mortgage and received a mortgage offer last week. After reserving the house we were given 28 working days to exchange contracts (takes us to 12/07), and we have agreed with the developers and the solicitors to pay a lower deposit now, and then the rest due before completion, as we each have help to buy ISAs so they will leave the money sat in those accounts for as long as possible to accrue the government bonus money.


    If you are in a position where you can get a mortgage now, I would. It is valid for 6 months anyway with most lenders. I think with most developers as soon as you reserve the house, the 28 days to exchange begins as they don't want you dropping out months down the line before the house is complete x
    • guysl80
    • By guysl80 18th Jun 19, 7:48 PM
    • 72 Posts
    • 1 Thanks
    guysl80
    • #5
    • 18th Jun 19, 7:48 PM
    • #5
    • 18th Jun 19, 7:48 PM
    Thank you all for your responses. I already instructed the mortgage broker to start the process. Presently sumbitting all the documents requested.
    Only worry is about the credit check as my credit file still says i have a xxx amount which i have already settled. If this is the case will i get declined or given a higher interest rate?
    Right now the Mortgage illsutration gives me a 2.09 fixed rate for a 5 years.

    Thanks in advance
    • Hutch100uk
    • By Hutch100uk 19th Jun 19, 1:21 PM
    • 546 Posts
    • 174 Thanks
    Hutch100uk
    • #6
    • 19th Jun 19, 1:21 PM
    • #6
    • 19th Jun 19, 1:21 PM
    Doesn't the mortgage offer only last 3 months though?
    • kingstreet
    • By kingstreet 19th Jun 19, 1:47 PM
    • 35,509 Posts
    • 19,417 Thanks
    kingstreet
    • #7
    • 19th Jun 19, 1:47 PM
    • #7
    • 19th Jun 19, 1:47 PM
    Doesn't the mortgage offer only last 3 months though?
    Originally posted by Hutch100uk
    Not on a newbuild it doesn't.

    Normally six months extendable, possibly longer. I've just downloaded a port offer on a Halifax newbuild with an expiry date of 19/06/2020.
    I am a mortgage broker. You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice. Please do not send PMs asking for one-to-one-advice, or representation.
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