Halifax bank and buy-to-let only lender BM solutions (Birmingham Midshires) have announced this morning that they have made some changes to their products, specifically around their completion dates on selected products and mortgage types. Here is a breakdown of what a completion date is and what specifically Halifax and BM Solutions are changing.
What Is A Mortgage Completion Date?
In a nutshell, a mortgage completion date is the date where all aspects of your mortgage application are wrapped up and…well…completed! If you are buying a house, this is when all funds for the purchase of the property will need to be transferred to the seller, all deposits, all mortgages. It is also the day when the property is officially yours and you can move into the home. If you are remortgaging or doing a product transfer or any other kind of mortgage where you are not actually buying a new property, the completion date is the date where all aspects of your new mortgage are set up and completed ready for you to start repaying the new loan.
What Could Happen If I Miss My Completion Date?
If a completion date is delayed for any reason or your mortgage does not complete in time, this can have negative repercussions for you. In most cases, when someone buys a property and the completion date has to be delayed for some reason, the seller’s solicitor and the seller can agree a new completion date with you without too much stress. But, there are instances where a completion needs to take place so that the seller can also complete on their next purchase, a your delay could cause an entire chain to halt or collapse. You could then be liable to lose your deposit and possibly lose the new property in worst case scenario.
In cases where people are buying a new build property, you are normally required to exchange contracts on the home (sign contracts and pay your deposit) and then subsequently complete on the purchase in quite short timeframes. Whereas a regular house purchase could take months to complete, a new build purchase can take several weeks. If you exchange contracts and pay your deposit but are unable to complete in time, you could possibly lose your deposit, your property reservation fee (which can be over £1,000 in some cases) and also risk losing the house.
What Are The Changes To Halifax and BM Solutions Completion Limits?
Halifax and BM Solutions have announced this morning that they will be doing a product refresh and also will extend product completion dates to allow people to benefit from the new products for longer without risk of losing the product. They have announced that they will be extending completion dates by 1 month. Buy-to-let house purchases across many products with BM will now have until the 31st of October 2023 to complete. If you speak to a mortgage advisor at Oportfolio, they will be able to go through all the new competitive buy-to-let rates with you.
Halifax’s standard fixed mortgages with or without fees also have until the 31st of October to complete. However, their new build specific products have a much longer completion deadline. For new build home buyers, across selected new build specific products, borrowers have until the 30th of April 2024 to complete which is great news, especially if build completion dates are delayed. Again, to find out more about Halifax mortgage rates, Halifax new build mortgages, Halifax green mortgages, and Halifax mortgage completion date extensions, speak to one of our mortgage advisors here at Oportfolio Mortgages.
Speak To A Mortgage Advisor If You Have A Tight Deadline
If you are looking to get a mortgage and know that you will need to meet a tight deadline to complete in time, the best thing to do is organise your mortgage through a mortgage advisor. You must also make sure that they are aware of the tight deadline before anything else. Your mortgage advisor will then be able to use their knowledge and expertise to secure you a mortgage in a suitable amount of time with a lender that can accommodate a tight deadline. Specifically, if you are purchasing a new build property, exchange date and completion date can come around very quickly. That is why a lot of lenders prioritise new build applications above existing home applications. Your mortgage advisor will be able to liaise with the lender, the builder and your solicitor for you to ensure completion takes place.
Call our team today to speak with a mortgage professional. The initial mortgage consultation is free of charge and your advisor will be able to go through everything with you either over the phone or in the office.