A WORCESTERSHIRE law firm has warned home buyers buying "off plan" they could become committed to a property they cannot afford.
Because most mortgage offers only last for three months, the danger is that by the time the property is built, a year or more later, it is no longer valid, according to Morton Fisher solicitors.
If the buyer's circumstances change - or lending policy changes due to changing economic conditions - the buyer could find themselves with a property but no mortgage.
John Rees, a property lawyer with Morton Fisher, said buyers were expected to sign a conditional contract within 14 days of agreeing to buy "off plan" and had to obtain a mortgage within a couple of weeks, after which the contract became unconditional.
"The danger is that if the buyer's position has changed credit-wise, then the bank could easily refuse to renew the loan offer, but the buyer will still be committed to the purchase."
Mark Thomson, head of financial services at Morton Fisher Solicitors, said there was "no easy answer".
Morton Fisher's financial services division handles mortgages, pensions, savings plans, investments, unit trusts and investment trusts.
The firm has offices in Worcester, Kidderminster, Bromsgrove, Stourport-on-Severn and Bewdley.
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