NatWest has launched the ability for brokers to extend the offer period on mortgages for new build homes, which could increase it from six to as much as 12 months. The aim is to enhance its flexibility for the new build market and helps bring it in line with other lenders.
The move reflects the complexity of the new build process, as it often takes longer for customers to complete the purchase and move into a newly built property after agreeing to purchase it. Given that a property may not yet be complete when the purchase is agreed a six month offer period may not be long enough for buyers to complete.
The change has taken immediate effect and will enable a mortgage broker to apply to extend the offer period for their customers at any time within the initial 6 month offer period. There will be a need to provide a declaration to confirm the customer’s financial situation, and whether this has changed at all since they were initially assessed. The extension to the offer will also be subject to a property valuation and credit search.
Luke Christodoulides, senior corporate account manager at NatWest, says: “The offer extension reflects our commitment to this new build market. Often through no fault of customers, broker or builder, completion deadlines can change and this enhancement will mean that our offers can be extended to provide peace of mind.”
David Hollingworth at L&C Mortgages said, “The more flexibility in their approach to new build that lenders can bring the better. Customers want to be able to choose from as wide a range of mortgage deals as they can but also want to know that the lender will offer a service that will cater for their needs when buying a newly built property.”
NatWest introduces extension for new build mortgage offers