Sub sales and Back to back transaction Mortgage

london21

Hi All, does anyone know or have had experience with Sub sales and Back to back transaction?
I am in the process of buying a house that has been owned for less than 6 months, not yet on the land registry but seller will provide transfer deed. I am looking for a morrgage can deposit up to 25%. 

csgohan4

some lenders do not lend on properties not owned for more than 6 months

K_S

@london21 What the poster above said. With respect to mainstream resi lenders - some are a clear no, some are ok, some are ok subject to the actual reason for it being sold on within 6 months.

What's the reason for the back to back sale? Do make sure the lender is ok with the reason before applying or else you may get tripped up at conveyancing or underwriting.

london21

K_S said:

@london21 What the poster above said. With respect to mainstream resi lenders - some are a clear no, some are ok, some are ok subject to the actual reason for it being sold on within 6 months.

What's the reason for the back to back sale? Do make sure the lender is ok with the reason before applying or else you may get tripped up at conveyancing or underwriting.

It’s an auction property. The seller renovated the bathroom and think converted 2 to 3 bedrooms. 

Reading online appears nationwide  are flexible but they seem to be taking a long time at present. 

K_S

@london21 Setting aside anything else relevant in the background, you have a lot of non-standard (for mainstream resi lenders) criteria to meet - auction property, vendor selling on within 6 months, original transaction not registered at LR, etc. Depending on the kind of auction, I presume you also may have auction deadlines to meet and a substantial deposit that could be forfeited in case you don't.

I don't know off of the top of my head and not saying they won't lend, but I would be surprised if this meets Nationwide's appetite. Plus as you rightly mention their service levels are appalling at the moment.

csgohan4

OP you need to consider a broker who deals with this type of property, research online doesn't replace what an experienced broker will know which are not always on the intermediary websites. 

Doing a shotgun approach is not going to do your credit history any good

https://forums.moneysavingexpert.com/discussion/6273914/has-anyone-gotten-a-mortgage-with-a-transfer-deed/p1

lonibra

csgohan4 said:

OP you need to consider a broker who deals with this type of property, research online doesn't replace what an experienced broker will know which are not always on the intermediary websites. 

Doing a shotgun approach is not going to do your credit history any good

https://forums.moneysavingexpert.com/discussion/6273914/has-anyone-gotten-a-mortgage-with-a-transfer-deed/p1

In his other thread OP mentions that he only wants non-advised route.

london21

csgohan4 said:

OP you need to consider a broker who deals with this type of property, research online doesn't replace what an experienced broker will know which are not always on the intermediary websites. 

Doing a shotgun approach is not going to do your credit history any good

https://forums.moneysavingexpert.com/discussion/6273914/has-anyone-gotten-a-mortgage-with-a-transfer-deed/p1

Thanks, trying all approaches in case someone here has had a similar experience. I have only made 1 application. 

london21

lonibra said:

csgohan4 said:

OP you need to consider a broker who deals with this type of property, research online doesn't replace what an experienced broker will know which are not always on the intermediary websites. 

Doing a shotgun approach is not going to do your credit history any good

https://forums.moneysavingexpert.com/discussion/6273914/has-anyone-gotten-a-mortgage-with-a-transfer-deed/p1

In his other thread OP mentions that he only wants non-advised route.

Thanks, at present I made the application online because the operator stated advisory have 2 weeks appointment wait and with a tight deadline made the application myself. 

lonibra

london21 said:

lonibra said:

csgohan4 said:

OP you need to consider a broker who deals with this type of property, research online doesn't replace what an experienced broker will know which are not always on the intermediary websites. 

Doing a shotgun approach is not going to do your credit history any good

https://forums.moneysavingexpert.com/discussion/6273914/has-anyone-gotten-a-mortgage-with-a-transfer-deed/p1

In his other thread OP mentions that he only wants non-advised route.

Thanks, at present I made the application online because the operator stated advisory have 2 weeks appointment wait and with a tight deadline made the application myself. 

Sorry I meant an MB, not the bank advisor. 2 week wait for an appt, what a joke.

[Deleted User]

Honestly its not a case I would touch with a barge pole. Unless you were going to bridge it in the short term and then remo afterwards I wouldnt be taking the risk of attaching my name to an advised process of trying to get a 1st charge mortgage with weeks before an auction deadline.  Honestly even a bridge is probably going to take too long with how long valuations are taking to happen at the moment.  

Saying that, here is a list of lenders on my system who may consider a back to back transaction when it has been bought at auction:

Nationwide, Principality, Leeds, Natwest, Santander, Virgin, Barclays, Clydesdale, Accord, Hanley, Stafford Railway, Buckinghamshire, Hinkley and Rugby, Furness, Swansea, Harpenden

Each of these will be subject to their own individual criteria and most of the time just down to how certain underwriters feel about the case.   I've had lenders on this list decline back to back cases, and ive had lenders not on this list agree them even though they say they wont.  It really comes down to the strength of the case.  With your timescales you really want to avoid the back and forth questions from underwriters so hopefully you get lucky. Most lenders publish underwriting timecales if you search for the lender name and add 'for intermediaries' at the end