NewBuy combined with Part Exchange?

grholden

Hi all,

Myself and partner are currently sniffing around the NewBuy scheme which I know has had a lot of mixed reviews. Thought it was worth doing a bit of research though. We are currently just in negative equity in our current property so realise that any part-ex deal with a builder offering NewBuy would require us to find a small shortfall. My question is this: does anyone know if a lot of the part-ex schemes that are offered by builders available in conjunction with NewBuy?

We currently have about 5% saved up (and realise that we'd need another £3-4K for costs / misc etc).

We got told yesterday by a sales rep (via a call to an IFA friend of hers) that the answer to the above would be a firm 'no' (and I can completely appreciate this) but am seeing today from a bit of internet research that some lenders are open to suggestions.

Appreciate any feedback.
Thanks.

betmunch

My personal opinion, and it is just that, is that you are asking a little too much of the builder. Theres a lot of hassle involved in both part-ex and NewBuy so dont think they would want to bother. I could be wrong on this as I am not a builder. i think it will be worth your time to investigate, just not with high hopes if you know what I mean.

grholden

Thanks. Yes, I completely appreciate where you're coming from. It's worth a bit of asking around, but I am not going to be surprised if they are not available in conjunction with each other. I'd be annoyed at myself for not looking into it if I later found out that it could have happened!

betmunch

I think you are tackling it from exactly the right angle, if you do get any success please can you update the thread as it will help others that arnt so thorough as you

grholden

Yes of course. May be a while before I get the time to do it.

VortexSteve

As far as I am aware all of the lenders have said no to part-ex when NewBuy is involved. One of them originally said yes but withdrew that a few days after launch.

grholden

VortexSteve wrote: »

As far as I am aware all of the lenders have said no to part-ex when NewBuy is involved. One of them originally said yes but withdrew that a few days after launch.

Thanks VortexSteve. Which lender was that, if you don't mind me asking?

VortexSteve

Believe it was Woolwich/Barclays.

alex1987_2

We are in a similar situation.

We bought just before the crash in Feb 2008. We are in negative equity of around 5-10k.

We spoke with the advisors on a local Charles Church new build site and they are happy to do part exchange and Newbuy on a plot we like and have suggested they might be able to offer us what we need to part ex for, but there would be no negotiation on the new house price?

The only sticking point is whether we can get a mortgage provider to agree to the part exchange side.

I contacted Natwest last week who said they are happy to allow us to part exchange with a newbuy mortgage, but the sales advisor at charles church has called us to let us know that shes heard rumours they are not allowing part-ex?

It's all getting a little confusing, so i will call Natwest again tomorrow to confirm?

alex1987_2

Just looked on the Nationwide site and it says it will NOT accept any builder incentive in conjunction with a newbuy application (that includes Part ex, stamp duty etc).

alex1987_2

For those interested, Natwest confirmed to me yesterday that they are aloowing part exchange.

The guy i spoke to said its no different selling your home to a builder than it is selling your home to a private buyer....

I've noticed on google that persimmon homes are advertising Newbuy AND partexchange to help you move quicker, so there must be another lender prepared to do part ex also?