New Home Purchase

[stezza170]

Sep'06 I had a mortgage garantee for 3mth and payed 5% deposit. The house was due to be built at the begining of the year, well within the mortgage offer time span. However, the house was build was delayed 6mths and in that time my mortgage offer expiried and when renewed it was declined. Since then I am having extreme difficulty getting a mortgage and the house is due to be completed on mon. After mon they give legal notice and I have 2 weeks to buy the house. What I would like to know is:
If the worst should happen and I can't get a mortgage, where do I stand with regard to my deposit?

Can the building firm be held responsible in anyway?

Should I need more time to arrange a mortgage other than the 2 weeks they have told me, can I get it?

All this seems very one sided, I am extremely dismayed at the way the building firm is really answerable to no one and can take as long as they like to build a house regardless of any consequence. Even after speaking on the phone earlier with the company they told me - if all goes well I have to move in a day late, too, as the office is closed on the day the keys are released. They've even delayed the moving in process.

Thanks for any help!

Stezza

[Answer Guru]

your AIP (3 month mortgage offer) should be easily renewed if you speak to the original mortgage company direct ie- Northern rock, abbey etc. unless you have taken out some other form of credit recently!!!
as far as the buildings side goes did you exchange contracts when your deposit was paid?? if you did and there is a clause saying once they are built you must pay the remainder (complete) within X amount of weeks,it is hard to say without seeing the contract. but if you have paid a deposit i have always found that they are non refundable and you will lose it, is it a national company or just a small local firm because local news papers are a great way of making yourself heard, hope this helps any other questions just add it as an answer

take care and good luck

[stezza170]

thanks for taking the time to answer for me. The building firm is yuill homes... quite big. The original lender wouldn't renew as a default appeared on my credit rating in the 6mth delay that yuill caused. However, I now have my mortgage, offer, be it �130/mth more. Had the house been built in time there would have been none of this hassle, worry or panic and I would be �130 better off a mth. I still think the whole process is terribly unfair and one sided. It envolves the normal working man laying a lot up front and really being given no garantee as to when work will be completed... the whole process has taken a year... this sort of service is, in my opinion, pretty lame. The purchaser of the house opposite me is in the same trouble and as yet is unable to get a mortgage.