Mortgage issues Buying house being sold as part X

SB1990

I wonder if anyone can help! We have bought a house that is being sold as part exchange toward a new build, so technically we are buying from the developer that the current owners have purchased their new build from, as they’ve sold their existing house to us in part exchange for their new one. we had our mortgage approved and offer sent through super fast and it’s with NatWest (one of the few lenders for those of us with high childcare fees) offer was recieved by us, solicitor and broker over 2 weeks ago and solicitor seems to have been dawdling for the past couple weeks even though we’re supposed to exchange within 28 days. Due to exchange this week and only this afternoon the broker has called us up in a panic having spoken to our solicitor today, as apparently NatWest only lend if the house you’re purchasing has been owned by current owners for 6months plus. The current owners have owned it for 5 years but seeing as we are actually technically buying it from the developer who only acquired it a couple of months ago Natwest are saying this isn’t within their policy so won’t go through with the mortgage. The broker is saying this is an unusual situation whilst the estate agent is saying they sell 10 part exchanges a month and never have this issue. Regardless we’re furiois that the broker and solicitor have messed up on this and further more not even noticed until this far along! What id like to know is has anyone else had a similar issue and has it been easily resolved? The broker is going to attempt to speak to the higher powers at NatWest and explain the part exchange situation in the hope they will over rule the decision and continue with our mortgage. Is this likely and has this worked for others who have experienced this?

davidmcn

Sounds rather odd given how commonplace it is, I haven't heard of any of the big lenders having a problem.

From the CML Handbook (which is the standard set of solicitor instructions most lenders use):

5.2.1Please report to us immediately if the person selling to the borrower is not the owner or registered proprietor unless the seller is:

a personal representative of the registered proprietor; or
an institutional mortgagee exercising its power of sale; or
a receiver, trustee-in-bankruptcy or liquidator; or
a developer or builder selling a property acquired under a part-exchange scheme; or
a Registered Housing Provider (Housing Association) exercising a power of sale.

NatWest wouldn't even need to know if the developer hadn't registered their title, so there's no logical reason why it should become a problem simply because they've registered their title.

Thrugelmir

Lenders internal policy can change at any time. To maintain the selling price of the new build. P\ex price potentially can be inflated somewhat.

solicitor seems to have been dawdling for the past couple weeks even though we’re supposed to exchange within 28 days

Will still be waiting for the searches and property information to be supplied.

solicitor have messed up on this and further more not even noticed until this far along

Solicitor wouldn't know any different.

SB1990

Thank you very much that’s very interested. Just seems really strange - our broker is going to try and speak to the higher level Natwest managers to try and see if there’s anyway around this, hoping there’s a quick resolution.

Many thanks

SB1990

The searches and property information from the seller solicitors were already obtained last week. We were actually supposed to exchange by this weekend and were waiting to be sent the final contracts and completion date until this came up as an issue only today. Interesting that lenders can change their internal policy at any time but still don’t fully understand the idea because surely that would mean natwest don’t plan on providing many mortgages to those buying part exchange properties!