Your browser isn't supported
It looks like you're using an old web browser. To get the most out of the site and to ensure guides display correctly, we suggest upgrading your browser now. Download the latest:

Welcome to the MSE Forums

We're home to a fantastic community of MoneySavers but anyone can post. Please exercise caution & report spam, illegal, offensive or libellous posts/messages: click "report" or email forumteam@.

Search
  • FIRST POST
    • Georgedunn
    • By Georgedunn 12th May 18, 2:13 PM
    • 27Posts
    • 5Thanks
    Georgedunn
    Vendor Forced Me To Exchange - Help
    • #1
    • 12th May 18, 2:13 PM
    Vendor Forced Me To Exchange - Help 12th May 18 at 2:13 PM
    Okay so a bit of background to the story before I ask for advice.

    I had agreed to purchase a property from Crest Nicolson in January. I am a first time buyer and a fairy young one too at 21 years old. The house I agreed to buy was £550k which is a large commitment for anyone. I am on a commission based job so my earnings can vary from month to month.

    Having agreed to purchase the house, I put down a £500 reservation fee, under the understanding the estimated completion date was going to be May. I appreciate this can change a little however this seemed reasonable.

    I then went through the whole mortgage and agreement in principle process which I was accepted on and then this progressed to a formal approval. The mortgage advisor did make the point that it was a fairly borderline approval, due to my high outgoings.

    At this point Crest have moved the estimated completion date to July / August, which I was a little concerned about as my mortgage offer expired at the end of August and as I was on a commission based job I didn’t want the pressure of having to re apply. My mortgage has been approved by Santander who take your lowest commission pay in the last 3 months into consideration.

    In April, Crest started putting pressure on me to exchange, I know this is normal for new builds for the builder to put pressure so they can get the deal into their sales figures. I however made it clear I wouldn’t exchange until I had a fixed completion date.

    The following week I was given an ultimatum by Crest and told that unless I exchanged they would refund my reservation fee and re market the property, they told me they still expected to complete July / August and that they worked closely with the mortgage advisor to ensure I wouldn’t have to re apply.

    I then contacted my solicitor to ensure if I wasn’t re accepted my deposit would be safe if I was declined, they advised I was protected as I was using the help to buy.

    I wouldn’t have exchanged however there were few properties left in the new build and this area was highly sought after.

    I then exchanged with Crest.

    Everything went quiet for 2 weeks until I got a phone call saying they had pushed the estimated completion date to the end of October.

    I want to know if there is anything I can do here? I feel like I have been mis sold and forced to exchanged. They would have known full well before I exchanged that it would have been pushed back.

    I am now under immense pressure to keep my earnings up at a certain point, as a first time buyer this has been a horrendous experience and I would recommend to stay away from Crest.

    Please let me know if anyone has been in a similar situation or who I should complain to.
Page 1
    • anselld
    • By anselld 12th May 18, 2:22 PM
    • 5,879 Posts
    • 5,611 Thanks
    anselld
    • #2
    • 12th May 18, 2:22 PM
    • #2
    • 12th May 18, 2:22 PM
    Delays in completion are common for new-builds.

    Presumably you have not lost the mortgage offer.

    You will in any case remain "under pressure to maintain income" in order to repay the mortgage and HTB loan in due course.
    • deannatrois
    • By deannatrois 12th May 18, 2:27 PM
    • 5,619 Posts
    • 7,900 Thanks
    deannatrois
    • #3
    • 12th May 18, 2:27 PM
    • #3
    • 12th May 18, 2:27 PM
    1) No one forced you to exchange (i.e. held a gun to your head, that is force). You could have walked away with minimal losses.., you chose not to, even without a sure completion date and knowing it had been extended already. You must be aware completion date extensions are quite usual with new builds.
    2) You applied for quite a high cost property, knew your outgoings were high, knew your earnings could vary.., so I assume you had some plan to overcome these potential difficulties. If not, that needs to be worked on NOW.
    3) REDUCE YOUR OUTGOINGS as a priority. Consider taking a lodger if you need to.
    4) Ask your solicitor what your position is with regards to the ever extending completion date and if it is now far enough away from the original completion date to withdraw legally and at what cost? I assume you have an independent solicitor or did you use a recommended one? We can't see your paperwork so any advice we would give is little better than a guess. Your solicitor has access to what you have signed.
    5)If you do have to complete, you might have to consider other mortgage options or getting the one you have extended. Reducing your outgoings will help any affordability figures.
    6) House buying is always a stressful process. Its just the way it is. I am sorry but you started it, you had time to reconsider but didn't. You can deal with it, but it will be stressful. You can't just refuse to do what is required once you have signed the exchange papers. No house purchase is stress free. Remember why you signed up originally and cling to that as an end goal. You wanted a new build specifically, and there is a down side to this (there are more lol). Changing completion dates almost always occurs with new build properties. At least you don't have a house to sell as well.
    Last edited by deannatrois; 12-05-2018 at 2:41 PM.
    • lincroft1710
    • By lincroft1710 12th May 18, 2:36 PM
    • 11,029 Posts
    • 9,360 Thanks
    lincroft1710
    • #4
    • 12th May 18, 2:36 PM
    • #4
    • 12th May 18, 2:36 PM
    You should take some responsibility for your own actions. Whatever the cost of a property, the purchaser has to maintain their income level to afford the mortgage repayments. If you thought maintaining your income was too hard or not possible then you should have bought somewhere cheaper or held off buying until you had a larger deposit, thus facilitating a smaller mortgage.

    No-one to complain to.
    • k3lvc
    • By k3lvc 12th May 18, 2:40 PM
    • 2,376 Posts
    • 3,933 Thanks
    k3lvc
    • #5
    • 12th May 18, 2:40 PM
    • #5
    • 12th May 18, 2:40 PM
    21yo
    £550k property

    Genuine interest - what job/income level and what sort of deposit ?

    Being brutally honest maintaining your income for next few months to obtain the mortgage is probably the least of your pressures
    • Georgedunn
    • By Georgedunn 12th May 18, 2:48 PM
    • 27 Posts
    • 5 Thanks
    Georgedunn
    • #6
    • 12th May 18, 2:48 PM
    • #6
    • 12th May 18, 2:48 PM
    Of course will stay under pressure to keep my income where it needs to be. Over a course of a year that will happen however as Santander take your lowest commission earning over the last 3 months there could be a case where I have a bad month.
    • Georgedunn
    • By Georgedunn 12th May 18, 2:50 PM
    • 27 Posts
    • 5 Thanks
    Georgedunn
    • #7
    • 12th May 18, 2:50 PM
    • #7
    • 12th May 18, 2:50 PM
    For clarity, I could have pulled out at any point yes.

    The reason I am so annoyed is that the delay is due to the properties behind me being built and the access to them. They have confirmed my property will still be ready in time but can!!!8217;t let me complete because of health and safety.

    All of the above is fair enough however they would have known this when pressuring me to exchange, seems very deceptive.
    • parkrunner
    • By parkrunner 12th May 18, 2:53 PM
    • 1,396 Posts
    • 2,196 Thanks
    parkrunner
    • #8
    • 12th May 18, 2:53 PM
    • #8
    • 12th May 18, 2:53 PM
    I am now under immense pressure to keep my earnings up at a certain point, as a first time buyer this has been a horrendous experience and I would recommend to stay away from Crest.
    Originally posted by Georgedunn
    You will be under that pressure for as long as you have the same job. If you can't keep your earnings at a certain level then you can't afford to repay the mortgage.
    • k3lvc
    • By k3lvc 12th May 18, 2:58 PM
    • 2,376 Posts
    • 3,933 Thanks
    k3lvc
    • #9
    • 12th May 18, 2:58 PM
    • #9
    • 12th May 18, 2:58 PM
    Of course will stay under pressure to keep my income where it needs to be. Over a course of a year that will happen however as Santander take your lowest commission earning over the last 3 months there could be a case where I have a bad month.
    Originally posted by Georgedunn
    You're missing the point - the 'lowest commission' bit only applies to getting the mortgage in the first place. What happens when you have it and you have a couple of bad months ?
    • Georgedunn
    • By Georgedunn 12th May 18, 3:18 PM
    • 27 Posts
    • 5 Thanks
    Georgedunn
    You're missing the point - the 'lowest commission' bit only applies to getting the mortgage in the first place. What happens when you have it and you have a couple of bad months ?
    Originally posted by k3lvc
    Maybe I haven't explained it properly. Over the last 18 months, 17 out of 18 would have qualified for the mortgage comfortably, one month where a number of factors caused me to have a lower month would have meant I wouldn't have qualified.

    With a mortgage even if you do have a couple of bad months you would have hoped that you would have enough savings to tide you by.
    • Georgedunn
    • By Georgedunn 12th May 18, 3:21 PM
    • 27 Posts
    • 5 Thanks
    Georgedunn
    1) No one forced you to exchange (i.e. held a gun to your head, that is force). You could have walked away with minimal losses.., you chose not to, even without a sure completion date and knowing it had been extended already. You must be aware completion date extensions are quite usual with new builds.
    2) You applied for quite a high cost property, knew your outgoings were high, knew your earnings could vary.., so I assume you had some plan to overcome these potential difficulties. If not, that needs to be worked on NOW.
    3) REDUCE YOUR OUTGOINGS as a priority. Consider taking a lodger if you need to.
    4) Ask your solicitor what your position is with regards to the ever extending completion date and if it is now far enough away from the original completion date to withdraw legally and at what cost? I assume you have an independent solicitor or did you use a recommended one? We can't see your paperwork so any advice we would give is little better than a guess. Your solicitor has access to what you have signed.
    5)If you do have to complete, you might have to consider other mortgage options or getting the one you have extended. Reducing your outgoings will help any affordability figures.
    6) House buying is always a stressful process. Its just the way it is. I am sorry but you started it, you had time to reconsider but didn't. You can deal with it, but it will be stressful. You can't just refuse to do what is required once you have signed the exchange papers. No house purchase is stress free. Remember why you signed up originally and cling to that as an end goal. You wanted a new build specifically, and there is a down side to this (there are more lol). Changing completion dates almost always occurs with new build properties. At least you don't have a house to sell as well.
    Originally posted by deannatrois
    Completley agree with all these points, I am just annoyed they gave me an ultimatum when they knew it was going to be delayed.

    i have 2 lodgers moving in who are essentially paying my mortgage for me, I am not worried about affordability at all just don't think the way Crest have treated a first time buyer is correct. Especially with all the 'treat your customer fairly'.
    • Georgedunn
    • By Georgedunn 12th May 18, 3:23 PM
    • 27 Posts
    • 5 Thanks
    Georgedunn
    21yo
    £550k property

    Genuine interest - what job/income level and what sort of deposit ?

    Being brutally honest maintaining your income for next few months to obtain the mortgage is probably the least of your pressures
    Originally posted by k3lvc
    I am a finance broker. Basic is under £20k but commission in a year in excess of £150k. House was £550k with a 5% deposit, standard 3% stamp duty.

    As an average it will stay above however I am due to go on holiday and that could impact sales. Alternatively I can reduce my outgoings on HP etc.
    • Georgedunn
    • By Georgedunn 12th May 18, 3:31 PM
    • 27 Posts
    • 5 Thanks
    Georgedunn
    You should take some responsibility for your own actions. Whatever the cost of a property, the purchaser has to maintain their income level to afford the mortgage repayments. If you thought maintaining your income was too hard or not possible then you should have bought somewhere cheaper or held off buying until you had a larger deposit, thus facilitating a smaller mortgage.

    No-one to complain to.
    Originally posted by lincroft1710
    Of course I am taking responsibility for my actions, I am not looking to pull out. Feel as one of the biggest house builders dealing with first time buyers they should treat consumers more fairly.

    The delays are due to access reasons and should have been explained before I exchanged.
    • lincroft1710
    • By lincroft1710 12th May 18, 3:37 PM
    • 11,029 Posts
    • 9,360 Thanks
    lincroft1710
    Feel as one of the biggest house builders dealing with first time buyers they should treat consumers more fairly.

    The delays are due to access reasons and should have been explained before I exchanged.
    Originally posted by Georgedunn
    Housebuilders treat all buyers the same -badly
    • theartfullodger
    • By theartfullodger 12th May 18, 4:16 PM
    • 9,745 Posts
    • 13,163 Thanks
    theartfullodger
    This is a wind-up / troll, isn't it? Surely nobody is that......
    • ScorpiondeRooftrouser
    • By ScorpiondeRooftrouser 12th May 18, 4:32 PM
    • 2,640 Posts
    • 4,180 Thanks
    ScorpiondeRooftrouser
    I am a finance broker..... commission in a year in excess of £150k..
    Originally posted by Georgedunn
    And the title of the thread is "Vendor Forced Me To Exchange - Help"

    Am I the only person whose main concern is why our society allows completely clueless people to earn insane amounts simply by pushing money back and forth across tables?
    • Georgedunn
    • By Georgedunn 12th May 18, 5:24 PM
    • 27 Posts
    • 5 Thanks
    Georgedunn
    Am I the only person whose main concern is why our society allows completely clueless people to earn insane amounts simply by pushing money back and forth across tables?
    Really off topic but on a commission based job you are paid a percentages of sales, so society doesn!!!8217;t justify what you are paid, you do. Supply and demand if everyone could do it you wouldn!!!8217;t get paid the same.
    • ScorpiondeRooftrouser
    • By ScorpiondeRooftrouser 12th May 18, 5:49 PM
    • 2,640 Posts
    • 4,180 Thanks
    ScorpiondeRooftrouser
    Really off topic but on a commission based job you are paid a percentages of sales, so society doesn!!!8217;t justify what you are paid, you do. Supply and demand if everyone could do it you wouldn!!!8217;t get paid the same.
    Originally posted by Georgedunn
    No, society allows it by permitting people who don't create anything actually useful to charge for their services. All you do is put people in touch with other people. Society could choose to eliminate your job entirely, simply by everyone agreeing not to bother with it, and everything would still function perfectly without a disproportionate amount of the worlds' resources being given to you.
    • Georgedunn
    • By Georgedunn 12th May 18, 6:00 PM
    • 27 Posts
    • 5 Thanks
    Georgedunn
    o, society allows it by permitting people who don't create anything actually useful to charge for their services. All you do is put people in touch with other people. Society could choose to eliminate your job entirely, simply by everyone agreeing not to bother with it, and everything would still function perfectly without a disproportionate amount of the worlds' resources being given to you.
    I will agree to disagree with you. The industry i!!!8217;m in (Asset Finance) injected £3.3m into the British economy in March alone.

    With your logic we could get rid of estate agents as they don!!!8217;t any value either, however the market wouldn!!!8217;t function to the same level.
    • Thrugelmir
    • By Thrugelmir 12th May 18, 6:14 PM
    • 59,852 Posts
    • 53,219 Thanks
    Thrugelmir
    The mortgage advisor did make the point that it was a fairly borderline approval, due to my high outgoings.
    Originally posted by Georgedunn
    With an annual income of £150k. Appears that there was, still is, ample scope for you to make some financial adjustments to your lifestyle. Certainly enough to raise further funds to reduce the amount you need to borrow.

    Not going to repeat what others have written already. Other than to say. Chalk this experience as a life lesson. Be less hasty in future. Before committing to something, give yoursef time to think matters through and reflect. Likewise don't be so hasty to blame others when they've done nothing wrong. The hole you've dug is of your own making.
    Financial disasters happen when the last person who can remember what went wrong last time has left the building.
Welcome to our new Forum!

Our aim is to save you money quickly and easily. We hope you like it!

Forum Team Contact us

Live Stats

4,192Posts Today

9,764Users online

Martin's Twitter