How long do i have to be in my home before remortgaging?

Dawndrd

Hi,
I am in the proccess of buying a home,it is a cash purchase and i will own the home outright.
I am not actually in the property yet and will not have completed for another 4 weeks and my Problem is it needs refurbishment.
I was hoping to move in then remortgage straight away to the tune of £30,000 (house at the minute is worth £175,000) but have been informed that in order to get a remortgage i have to have been on the land register at that address for at least 6 months.. Does anyone know if this is correct as although the house could just about be lived in at present it is far from ideal for my young children and i cannot really wait 6 whole months to release the money for work to begin.
Any advice would be great thanks.

opinions4u

Why not just take a mortgage out now? - you'll probably have access to a slighlty better range of mortgage products if you borrow to purchase.

To answer your question, there's no legal minimum, although you should ensure your solicitor doesn't hang around with registering the charge.

A lender may be slightly concerned that you need to raise capital so shortly after buying, and being at an address for a short period of time won't be ideal from a credit scoring perspective.

Simon_gloster

How long do i have to be in my home before remortgaging?

Generally 6 months minimum from the date of completion.

Jacka87

I realise its a cash purchase and that the reason why you have not went for a mortgage already, however I would consider speaking to a lender and seeing what they say. Inform them of the circumstances, the fact that they realise you are buying at a cash purchase but looking to remortgage may get them to lend to you.

Also why is it a cash purchase, normally this is because the seller wants a quick sale. However if you are needing to wait 4 weeks maybe it is possible to arrange a mortgage quickly??? Just a thought.

The third option would be to get a loan from somewhere else to do the refurbishment (if possible) then to pay this off when you do remortgage in say 6 months time.

Mrs_Bumble

Generally lenders will require that you have lived in the property for 6 months before looking a t remortgage.

As opinions4U states above why not get the £30K now as a purchase mortgage as you are likely to have less messing about that way round and a wider choice and won't have to worry about the waiting 6 months etc and can get straight on with it?

koexelek

Mrs_Bumble wrote: »

Generally lenders will require that you have lived in the property for 6 months before looking a t remortgage.

As opinions4U states above why not get the £30K now as a purchase mortgage as you are likely to have less messing about that way round and a wider choice and won't have to worry about the waiting 6 months etc and can get straight on with it?

Quire right, You used to be able to remortgage a house the next day, but the lenders have recently introduced the six months rule as part of their prevention of all lending initiatives :rolleyes:

I think it is actually six months from the date the property is registered at the Land Registry, so if the solicitor is a bit slaw at getting that done, it could be longer.

getmore4less

If you need to raise funds don't do a cash purchase mortgage immediately.

If you wont need the funds for a while and will spread the spends while doing the place up then an offset product would be ideal.

100% offset so no interest from day one, you will have the set up costs sooner ot later anyway so get in now while you can.

Borrow as much as you can on a decent rate no point in borrowing less it does not cost any more.

Coupon-mad

I agree with the other posters.

Raise the mortgage now - apply this week - for the purchase (even though you don't need the mortgage monies for the purchase as such). Don't fill the forms out saying 'refurbishment', fill them out stating the money is for the purchase (which it is in effect, your spare cash left over will then be available for the refurb).

Otherwise you may have to wait 6 months and may not be able to get some low interest rates and offers which are only available for 'purchase'.

luckyfool

koexelek wrote: »

Quire right, You used to be able to remortgage a house the next day, but the lenders have recently introduced the six months rule as part of their prevention of all lending initiatives :rolleyes:

I think it is actually six months from the date the property is registered at the Land Registry, so if the solicitor is a bit slaw at getting that done, it could be longer.

I suspect it is more to do with foiling the rampant mortgage/solicitor fraud which occurred at the peak of the market costing lenders hundreds of millions.


Of course the 6 month rule has been in effect for most lenders for a very long time.

Dawndrd

Hi,
Thank you for your replies.
The reason i have not arranged a mortgage is because the money is coming from my ex as settlement.. it is the equity from the home we owned together but we were not married he is basicly paying me off and he is keeping the old family home.
There lies the problem.. my solicitor refuses to allow me to be released off my joint mortgage with my ex until he pays his share (he has the money so our old home will not be sold he will keep it in his sole name)
Anyway the long and short of it is no mortgage company will lone me any money until i am off the old mortgage because they say on paper i will have 2 mortgages and with my income they say i cannot afford 2.. do you see why it is all so complex?!

Mrs_Bumble

So at the point that you complete on your house you will be released from the mortgage on the marital home? Do you have that in writing? If that is the case then a lender may lend on that basis have you looked into that avenue?