Newbuy Mortgages & Part Exchange

nxjxc86

Hi all, I wondered if anyone has managed to get a newbuy mortgage combined with a part exchange? I can see a thread from a few months ago with most people saying no :-( but I phoned natwest yesterday and they said they can do it but now I am worrying. I am going with Redrow housing. Any help appreciated
Thanks

Jimbo1976

Since newbuy isn't restricted to first time buyers, that indicates you have a chance of being able to part exchange. The bank does not really need to know about the part exchange bit.

Ultimately it depends on the amount of equity you have. If the developer of the new property is prepared to take your old property and there is enough equity left over after paying off the old mortgage to provide the deposit for the new buy scheme then you should be ok.

Speak to Redrow to make sure they are happy with it. Also speak to a broker as they will have access to mortgages from a variety of lenders so they may be able to beat what NatWest has offered you

sturicho

Hi

i am also trying to get a new buy with part exchange but have been told that the Natwest won't do it. How did you get on? I know Abbey do one but they haven't got very good reviews?

thanks

nxjxc86

Hi, I am awaiting a valuation this week on part ex, I have been told no by redrow but I will contact natwest again once I have an offer on my house. As far as I know Abbey dont work with redrow? I could be wrong but I did see online they do it. Might be worth getting a mortgage with them initially and switching? I will update after my valuation, fingers crossed I get a decent offer

sturicho

Good luck, we have an agreement in principle from the Abbey so we are just waiting for it to go through but i have been told they are very difficult and look at every penny you spend. Also Natwest have the lowest rates so is a little cheaper. Hope the valuation goes well, and its well worth putting in a cheeky offered on the new build, we did and got a really good price and some extra's added in. The builder said they don't do it but they do!

DiscoCat54

I received a new buy offer from Halifax for a 90% LTV however the rate was very high so I opted to pay a 15% deposit instead.

bpe

Same here. Looked in to this, recently px'd and decided to put in a 15% deposit with Nationwide instead, much better rate. Nationwide won't px and newbuy. My understanding is the only lender doing this is Santander. And you'll have to use the builders IFA that I wasn't comfortable with. He suggested a 35 yr mortgage on a 5 yr fix, which we promptly turned down!

Good luck with the px, we managed to get an increase of 10k on ours so don't take their first offer after talking about walking away because of the px offer, although its not what we wanted the value is in the hassle factor no estate agent fees and not waiting for a buyer. We got a reasonable discount on the new build, carpets and turf. They used zoopla as part of the desktop research.

JPB123

DiscoCat54 wrote: »

I received a new buy offer from Halifax for a 90% LTV however the rate was very high so I opted to pay a 15% deposit instead.

Yes, the rate is higher on NewBuy, but it's 95% lending. I think you're missing the point. You can't compare a rate based on a 5% deposit with a 15% deposit. "Oh, that Rolls Royce was very expensive. I'll catch the bus". You need to compare like with like.

As to the original question, the only lender that allows PX on NewBuy is Abbey.

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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.

nxjxc86

Hi everyone had the valuation this morning, they said they should make me an offer by the end of the week :-) I have made it clear I can only accept a certain amount to cover my deposit so I look forward to hearing the offer. I am going to look into mortgages once I have my offer. Redrow asked me to speak to one of their mortgage advisors but I am unsure whether or not to go with them or someone I choose myself. I am willing to pay a high rate so I can move as my area is not great and my daughter is starting school next year.

Thanks for advice too, I hear they are willing to do alot at the minute for buyers. Good luck to everyone else trying to move its certainly a mine field

nxjxc86

I spoke to the newbuy team at natwest and the definately do not do part ex and newbuy mortgages combined :-(

DiscoCat54

On the Abbey for intermediaries site it states that the can do newbuy with part ex but only if the property being part-ex'd is being sold at no more than market value otherwise it would be classed as an incentive.