NatWest DIP to Application - 6 month rule

thecontrastdude2022

Hi,

I am purchasing a home in Scotland from a family member. They have owned the home for less than 6 months. They purchased the home, renovated, and are selling to me for the new independent home report value. All renovation work can be evidenced and the home is valued the same as similar homes in the area.

Natwest application is with the underwriters. The advisor knows the circumstances but packaged it and sent to underwriters anyway.

Am I wasting my time with Natwest?

Woodstok2000

No. What makes you think you are?

thecontrastdude2022

https://forums.moneysavingexpert.com/discussion/comment/81898368#Comment_81898368

I found something on their website in their criteria section that suggests it would be declined if current owners owned for less than 6 months

kingstreet

NatWest criteria;-

Back to Back / Day 1 Remortgage

Back to back is typically where the vendor has owned the property for less than six months, or remortgages where they've owned the property for less than six months.

 Solicitors are required to disclose any transaction in the last six months and, if this happens, cases will be declined after offer unless the circumstances meet one of the following situations in which lending may be considered:

 Customer funded purchase: the customer has funded the original purchase using their own funds or funds from a close family member and are now looking to set up a mortgage to replenish their own personal savings or to repay the close family member. The lending would be restricted to the lower of the original purchase price or valuation. Proof of original savings or monies being lent by the family member may be required.

Bridging: residential mortgage applications where the customers required a bridging loan due to delays in selling the existing property, subject to normal underwriting. The previous property has now been sold and the applicants are looking for a mortgage on the new property with funds to be used to repay the bridging loan. Buy to let applications are not acceptable in this situation.

Inherited: a recently inherited property where the beneficiary wishes to release some of the equity for residential or buy to let purposes, or to buy the shares in the property inherited by others (e.g. siblings or joint beneficiaries). We will also consider lending where our customer wishes to purchase the property from a vendor who recently inherited the property. 

Porting: where a fixed or discounted rate was ported to a new property but is now expiring/has expired and the customer wants to remortgage within the 6 month period to gain a new rate. Proof of the rate roll off has to be obtained for example mortgage offer or rate roll off letter from the previous lender.

Repossessed property: where the vendor is the mortgage lender in possession i.e. the property has been repossessed within the last six months and is being sold by the mortgage lender or their agent. This does not include repossessed properties being purchased cheaply at auction and then sold on by a third party. 

Part exchange: where the vendor is a large national house builder selling a property acquired under a part-exchange scheme.

kingstreet

You may also fall foul of the newbuild rule too;-

"What is our definition of a New Build?

Any property built, first occupied in its current state or significantly modernised, refurbished or altered within the last two years.

The valuer will decide whether a building meets this definition at the point of valuation."

As a result, you may require a warranty or professional consultant's certificate.

ACG

I think this will be a problem.

We had one last year which involved a "large developer" although Natwest argued it was not. We eventually got it through but Natwest seem quite strict on this sort of thing.