Natwest - Lending on raising finance

septemberbaby

It looks like we may be able to raise enough deposit without selling our existing home.

We still are selling our existing home but we are wondering in the interim so as not to lose the house we want to buy what implications this would have on our existing mortgage offer with Natwest and would they actually really need to know.

foxy-stoat

No implications, you just need to tell the new lender your current financial commitments and assets.

muhandis

Yes, they would need to know, as would your solicitor.

Possible implications on your current offer -

1. I would imagine they need additional proof re source of deposit and have to reissue the offer.

2. Affordability - what happens if the current property doesn't sell before completion and you have to carry a second mortgage (if any) and associated expenses of maintaining the house? That might reduce the amount Natwest will lend you or they might add a condition in the mortgage offer specifying that the house be sold before completion.

Best to talk to your broker or Natwest mortgage adviser to get a clear picture.

septemberbaby wrote: »

It looks like we may be able to raise enough deposit without selling our existing home.

We still are selling our existing home but we are wondering in the interim so as not to lose the house we want to buy what implications this would have on our existing mortgage offer with Natwest and would they actually really need to know.

septemberbaby

muhandis wrote: »

Yes, they would need to know, as would your solicitor.

Possible implications on your current offer -

1. I would imagine they need additional proof re source of deposit and have to reissue the offer.

2. Affordability - what happens if the current property doesn't sell before completion and you have to carry a second mortgage (if any) and associated expenses of maintaining the house? That might reduce the amount Natwest will lend you or they might add a condition in the mortgage offer specifying that the house be sold before completion.

Best to talk to your broker or Natwest mortgage adviser to get a clear picture.

Thank you for this appreciate it

we are looking at a bridging option also

Any thoughts??

muhandis

Sorry, I'm not particularly clued in about bridging finance.

septemberbaby wrote: »

Thank you for this appreciate it

we are looking at a bridging option also

Any thoughts??

amnblog

SeptemberBaby tells NatWest current home is being sold and new home bought. Mortgage offer issued on that basis.

SB decides to buy first without selling. Is this an issue for NatWest? Potentially yes for a number of reasons including, but not limited to:

Affordability - is there lending on the current pty
Money Laundering - if not from sale, source of deposit must be evidenced
Legal - current offer says current property must be sold so solicitor cannot complete without a sale
Intention - Nat West will ask themselves why are you not selling, are you going to rent one of these properties out

Bridging may be the answer, but we need to answer a number of questions first.