NatWest is extending the offer period for mortgages on new build properties to up to 12 months.
This extension isn’t automatically granted, but has to be requested by intermediaries within the initial six-month period. It will be subject to a successful credit search and property valuation.
This change – which comes into effect from 9 March – brings NatWest into line with other major lenders operating in the new build sector, by effectively giving buyers a year-long offer period.
NatWest says the process should be straightforward for brokers, who simply have to complete an offer extension template.
To do this they will need to provide a declaration confirming the customer’s current financial circumstances. This will include any changes since the initial assessment.
NatWest says this extension reflects the “complexity” of the new build process. It says that the time it takes from a customer agreeing to purchase a property to getting the keys is often longer than the six month window allowed on most standard mortgage offers.
NatWest’s senior corporate account manager Luke Christodoulides 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.”
Legal & General Mortgage Club new build manager Craig Hall adds: “This news provides certainty and peace of mind for all parties involved in the home buying process and will be positively welcomed by both customers and intermediaries.
“This extension is in line with the majority of lenders operating in the new build market, but also further supports their growth aspiration into this sector.”