Can you seek an alternative mortgage provider after signing contracts?

Emb2018

Hi, we have purchased a new build property and were told today that it probably won't be ready until march or April next year instead of January as we were first told. I have some concerns over the mortgage as I know you only have 6 months to draw down the mortgage from the date on the letter of offer.

We got our letter of offer last week which brings us up to December and they advised we could get a 30 day extension but if the house isn't ready we would have to reapply. I suppose I'm just worried about lending rules changing and if we reapply they may not offer us the same amount or not offer us a mortgage at all.

I was wondering if it is possible to seek mortgage approval and letter of offer from a different bank maybe around September or can we not do that as we have already signed contracts and paid the deposit?

Thanks in advance

Senna

Who do you think won't allow you to go to a different bank, the builder? The builder wants the money, makes no difference who it comes from.

Emb2018

Senna wrote: »

Who do you think won't allow you to go to a different bank, the builder? The builder wants the money, makes no difference who it comes from.

I just wasn't sure if another bank would approve us for a mortgage as all our savings will have gone into the deposit

Victor

Have you paid the booking deposit (usually a few thousand) or have you signed contracts and paid the 10% contractual deposit?

Emb2018 wrote: »

I just wasn't sure if another bank would approve us for a mortgage as all our savings will have gone into the deposit

The banks want borrowers 'on the hook' when it comes to contributing to the cost of a property. This means:
* As people are more prudent with their own money than other people's money, there is less reckless spending.
* Overall borrowing ability is limited. 100% loans can mean unlimited borrowing.

If you have used your savings to pay the deposit, this criteria is fulfilled for whatever bank you deal with.

Emb2018

Victor wrote: »

Have you paid the booking deposit (usually a few thousand) or have you signed contracts and paid the 10% contractual deposit?

The banks want borrowers 'on the hook' when it comes to contributing to the cost of a property. This means:
* As people are more prudent with their own money than other people's money, there is less reckless spending.
* Overall borrowing ability is limited. 100% loans can mean unlimited borrowing.

If you have used your savings to pay the deposit, this criteria is fulfilled for whatever bank you deal with.

Yes we have signed contracts and paid 10% deposit but I don't think the house will be ready within the 6 months we have to draw down the mortgage so I am considering applying for a mortgage with a different bank in a couple of months just incase the lending rules change in October that way I have a further 6 months which should cover us in the event the house isn't ready until march

jimmycrackcorm

Senna wrote:

Who do you think won't allow you to go to a different bank, the builder? The builder wants the money, makes no difference who it comes from.

There'll be a record in their credit check showing a mortgage approval. It'll be a red flag top another bank who may think it's an attempt to get multiple mortgages for the same property.

Victor

Emb2018 wrote: »

Yes we have signed contracts

Is it 'subject to mortgage'?

68 lost souls

jimmycrackcorm wrote: »

There'll be a record in their credit check showing a mortgage approval. It'll be a red flag top another bank who may think it's an attempt to get multiple mortgages for the same property.

We have full approval with several banks. No issues so far. EBS, BOI, AIB, KBC and Ulster

Emb2018

Victor wrote: »

Is it 'subject to mortgage'?

Subject to selling our existing home which we have done