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WWYD - Mortgage/Searches

2 replies

Scholesfan · 20/11/2019 04:18

Hi

So we've reserved a new build property which is already built and paid the holding deposit a week ago.

It's a SO house being sold through an umbrella company of the housing association.

On reserving, they set the exchange date for 28 days and completion for 2 weeks after that. They guy said that they would be flexible in this and we wouldn't lose our deposit exactly on those days, along as they see progress and we dont fall of the face of the earth.

However our best mortgage deal is through a lender that does all manual checks and underwriting and are historically slow and ask for alot of documents/answers. From searching online it looks like most are saying 4-8 weeks for the offer to arrive, some longer (those longer seem self employed).

We have instructed a solicitor on the lenders panel but havent paid any monies for searches etc.. as our broker advises against it until a valuation comes back and mortgage offer issued.

However I dont want to get the developers back up by coming up to the 28 day exchange date and having neither a mortgage offer or searches completed.

The sensible thing seems to order searches and atleast have that side of things sorted just awaiting the mortgage offer ready for exchange? Or is this heart over head?

We had a mortgage offer a couple of months ago with a different lender but that sale fell through. As this is shared ownership, slightly more expensive and with abit more of a niche lender, I'm starting to panic.

SF

OP posts:
everyonebutme · 20/11/2019 05:24

Don't assume that you will get a mortgage. I had my mortgage refused at the underwriting stage. I thought it would be easy as I was staying with my current lender (never defaulted, good track record, etc) and the original people I spoke to had said that it all looked good and affordability was reasonable. Never had a loan, always pay off my credit card, reasonable income, etc. I was completely gobsmacked. Ended up finding a mortgage advisor (who we paid) to get us sorted with one.

Dinosauraddict · 20/11/2019 09:11

In this situation I would definitely be paying for the searches etc in good faith to show your commitment. That is a long time to wait for a mortgage offer, and it the house is already built the developer won't hang around as long. Also, I'm assuming you've paid a reservation fee. Even though they will usually be flexible on the 28 days as long as you've shown decent progress, the small print you've signed will usually say that you may forfeit that deposit if you don't exchange within 28 days and they decide to remarked/sell elsewhere.

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