NewBuy combined with Part Exchange?

Wicker

alex1987 wrote: »

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

NATWEST WARNING!!!!

Just to let you know I was 20 hours away from agreeing a mortgage with Natwest and signing off the paperwork with Persimmon after accepting their part exhange offer and then them accepting our offer for the new property... Natwest told me on 3 seperate occasions prior to this that they DO accept part exchnage so on this basis we put a £500 deposit on the house...

Today Permission called me to tell me that Natwest DO NOT ACCEPT PX with NEWBUY. I was signing off tomorrow!! :mad:

Me and the wife are absolutely gutted and I was livid with Natwest... I have done everything I possibly could but they will not budge or try and ease my pain at all... so it has ended up with us losing the new property, me losing part of the deposit and Natwest putting in a investigation to why their entire Mortgage and Newbuy departments are telling people that they do accept PX when they dont.

This is no fault of Persimmons at all (even though Natwest tried to blame them for some of this on the phone, I quickly corrected them). Persimmons have been very good to deal with so far....

Looks like no lender will accept PX, sorry guys.... Sorry if your hopes and dreams are shattered like mine and my wifes were today.

Natwest have now just lost my 17 years of custom.... anyone suggest a good bank?

It will be interesting to see what they come back with!

One emotionally drained ex-natwest customer.

alex1987_2

I do not understand this situation at all..... how does a major lender not let it's staff know what it's policies are??

It's disappointing that no lender is accepting part exchange with a newbuy mortgage - i don't understand why they aren't accepting it?

Whilst i appreciate all builders use a 'pot' of cash to their best advantage whether that is achieving best possible sale price by buying in a part ex slightly above value and achieving full list price or just selling below the list price - i personally don't see what the major problem is with with part ex - after all, isn't this scheme ment to help get the housing market moving again? Part ex plays a valuable role in that?!

ajclack

I would also like to know about this. I was told by a Halifax Senior Mortgage Adviser that we CAN use both schemes with each other but Bovis' head office have queried this! This is painful enduring this!

JPB123

The only lender offering part-ex with NewBuy is Abbey. However, you need to check if the builders are on their panel. The following are:

Barratt Homes (David Wilson Homes and Ward Homes)
Berkeley (St George, and St James)
Bovis Homes
Persimmon (Charles Church, and Westbury)

Taylor Wimpey are not on panel yet.

The main issue you'll have is getting the builder to agree a part-ex due to cost of sale on NewBuy.

I am an Independent Mortgage Adviser

You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.

shapecontractor

NatWest def do not do part-ex with Newbuy. Be warned also the lending criteria with Newbuy is extremely difficult to satisfy. You must have absolutely 100% good credit rating , abs no defaults or missed payments, a small amount of existing credit. How do I know, just been turned down by NatWest for NewBuy. I had 20k equity in my flat that's SSTC. Needed 10k deposit. Cleared all Natwests pre-checks. Applic went to underwriter who declined. My credit repayments are exemplary but seems a 20k balance on a loan I have over 20 yrs (low monthly repayment) (divorce settlement) they were unhappy with. My advice is don't get your hopes up and expect to lose £250 deposit with Persimmon. That way it won't come as a great surprise

ajclack

I am going to sit down with the Mortgage Advisor tomorrow regarding the Santander (Abbey) NewBuy/Part Exchange. Has anyone else had any issues with this or experience with Santander?

Frames84

Anyone managed to use NewBuy and Part Ex in the same application? I'm just researching the idea and whether it's do-able?