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  • FIRST POST
    • darkcloudi
    • By darkcloudi 8th Feb 18, 8:46 PM
    • 499Posts
    • 160Thanks
    darkcloudi
    New Build - Reserving Mortgage How Long?
    • #1
    • 8th Feb 18, 8:46 PM
    New Build - Reserving Mortgage How Long? 8th Feb 18 at 8:46 PM
    I am planning on buying a new build but was wondering which mortgage providers are the best to go for. From what the agent told me the house is not completed till Aug / Sept, so applying for a mortgage now would mean it would expire by the time I got to exchange.

    Would I be best to wait till April to apply for a mortgage?

    I am in the process of putting 120,000 from sale of my current home, applying for Help to Buy to assist with the new purchase.

    To note, my current mortgage is on a fixed rate with Nationwide currently on 3% penalty and will be 2% penalty from July. Was tempted to stay with Nationwide due to this as its portable else they will be a penalty. Current balance is £38,000

    A broker I spoke to suggested to go for Satander as they are good and flexible to extend the date, I was planning to speak to Nationwide in the morning on how flexible they were on new builds just in case delays in the build. I want to go for either a 5 year fixed or 10 year fixed.

    I bank with First Direct and seen the rates they offer are better.

    Thanks for any responses
    Last edited by darkcloudi; 08-02-2018 at 8:49 PM.
Page 1
    • Thrugelmir
    • By Thrugelmir 8th Feb 18, 8:52 PM
    • 58,535 Posts
    • 51,893 Thanks
    Thrugelmir
    • #2
    • 8th Feb 18, 8:52 PM
    • #2
    • 8th Feb 18, 8:52 PM
    so applying for a mortgage now would mean it would expire by the time I got to exchange.
    Originally posted by darkcloudi
    You mean completion. The developer will expect to to exchange contracts within a short period of time. Meaning that you are committed to the purchase. Potentially without having a mortgage in place.

    There's no timetable to new housebuilding. The dates you've been provided with are just an estimation. Be prepared for them to slip.
    Financial disasters happen when the last person who can remember what went wrong last time has left the building.
    • darkcloudi
    • By darkcloudi 8th Feb 18, 9:06 PM
    • 499 Posts
    • 160 Thanks
    darkcloudi
    • #3
    • 8th Feb 18, 9:06 PM
    • #3
    • 8th Feb 18, 9:06 PM
    Thanks, yes I meant completion. I had feeling the date would slip as have heard from people it slipped by a month or two for them, hence I want to delay getting a mortgage closer to the time but not sure how well that would work.

    Worst case scenario I have to re-apply for a mortgage closer to the time, if the delays occur. Financially I am in a good position so no problems in getting a mortgage and happy to complete but more concerned on losing the mortgage rate that I would have got during the original application (especially if rates go up)

    Just checked First Direct's website and they don't do Help to Buy
    • crystalpinks
    • By crystalpinks 8th Feb 18, 10:48 PM
    • 40 Posts
    • 20 Thanks
    crystalpinks
    • #4
    • 8th Feb 18, 10:48 PM
    • #4
    • 8th Feb 18, 10:48 PM
    I've recently got my mortgage offer from Halifax for a new build (estimated completion May) and offer expires December 18
    • darkcloudi
    • By darkcloudi 9th Feb 18, 5:43 AM
    • 499 Posts
    • 160 Thanks
    darkcloudi
    • #5
    • 9th Feb 18, 5:43 AM
    • #5
    • 9th Feb 18, 5:43 AM
    Thanks, thats put my mind to rest, didnít realise you can reserve for that long.
    • crystalpinks
    • By crystalpinks 9th Feb 18, 9:56 AM
    • 40 Posts
    • 20 Thanks
    crystalpinks
    • #6
    • 9th Feb 18, 9:56 AM
    • #6
    • 9th Feb 18, 9:56 AM
    We reserved just before Christmas for May 18 completion, they wanted a 28day exchange but we won't exchange til mid Feb (which they are fine about as long as they know things are moving).
    My solicitor was initially cautious about exchanging too soon, but as offer doesn't expire til December we have a nice bit of wiggle room if there is any build delays !
    • pl187
    • By pl187 9th Feb 18, 12:24 PM
    • 13 Posts
    • 2 Thanks
    pl187
    • #7
    • 9th Feb 18, 12:24 PM
    • #7
    • 9th Feb 18, 12:24 PM
    Some lenders will offer an offer extension on a case by case basis on new builds, like you said worst case scenario would be re-apply and potentially get a higher rate than the original offer.

    You mention you will be using help to buy but own a property already, isnt the eligibility that you must be a first chime buyer?
    Last edited by pl187; 09-02-2018 at 12:29 PM.
    • kingstreet
    • By kingstreet 9th Feb 18, 12:30 PM
    • 33,399 Posts
    • 18,088 Thanks
    kingstreet
    • #8
    • 9th Feb 18, 12:30 PM
    • #8
    • 9th Feb 18, 12:30 PM
    Some lenders will offer an offer extension on a case by case basis on new builds, like you said worst case scenario would be re-apply and potentially get a higher rate than the original offer.

    You mention you will be using help to buy but own a property already, isnt the eligibility that you must be a first chime buyer?
    Originally posted by pl187
    No. That any owned property be disposed of on or before completion of the new purchase.
    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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