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BTL "6 month ownership rule"
phlash
Posts: 883 Forumite
So here is a tough one to get your teeth into:
A friend has the following situation, and asked me for some advice, naturally I have come here!
Property bought for cash (a wreck). It will be brand spanking new within 3 months of initial purchase.
At which point, a BTL mortgage is required. Preferably 75% LTV.
What lenders (if any), are not employing the "6 month ownership rule". I have heard rumours of Natwest not requiring the 6 month rule, for cases like above, but are there any others?
Thanks in advance.
A friend has the following situation, and asked me for some advice, naturally I have come here!
Property bought for cash (a wreck). It will be brand spanking new within 3 months of initial purchase.
At which point, a BTL mortgage is required. Preferably 75% LTV.
What lenders (if any), are not employing the "6 month ownership rule". I have heard rumours of Natwest not requiring the 6 month rule, for cases like above, but are there any others?
Thanks in advance.
I can take no responsibility for the use of any free comments given, any actions taken are the sole decision of the individual in question after consideration of my free comments.
That also means I cannot share in any profits from any decisions made!;)
That also means I cannot share in any profits from any decisions made!;)
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Comments
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Any ideas anyone?I can take no responsibility for the use of any free comments given, any actions taken are the sole decision of the individual in question after consideration of my free comments.
That also means I cannot share in any profits from any decisions made!;)0 -
why not just rent it out for 3 months till the 6 months is up then morgage "buy to let" at the 6 month mark, as they will already have a tennent the morgage company will be even more happy to lend0
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The cash is required after 3 months, so simply waiting to the 6 month mark does not help.
Also long term, as a repeated exercise a 3 month month delay every transaction is significant when doing several. I agree that the inconvenience on a one off project is acceptable, but not with multiple transactions on a long term plan.
So any awareness or rumour of appropriate products would be very useful. Specific details are not necessarily required, as I have a phone and can find out, but it is better to shorten the list from the start!I can take no responsibility for the use of any free comments given, any actions taken are the sole decision of the individual in question after consideration of my free comments.
That also means I cannot share in any profits from any decisions made!;)0 -
Sigh!
If the punter don't like the rules, perhaps he should find another game to play...
Cheers!
Lodger0 -
Lol. I'll bare that in mind when I go back with information!I can take no responsibility for the use of any free comments given, any actions taken are the sole decision of the individual in question after consideration of my free comments.
That also means I cannot share in any profits from any decisions made!;)0 -
any ideas?
boxsetseries. com0 -
You could look at a bridging loan for the 3 mnths. Usually you can get this for about 1% per month. Then when the 6mnth rule is up remortgage as usual.I am a Mortgage Adviser
You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.0 -
So here is a tough one to get your teeth into:
A friend has the following situation, and asked me for some advice, naturally I have come here!
Property bought for cash (a wreck). It will be brand spanking new within 3 months of initial purchase.
At which point, a BTL mortgage is required. Preferably 75% LTV.
What lenders (if any), are not employing the "6 month ownership rule". I have heard rumours of Natwest not requiring the 6 month rule, for cases like above, but are there any others?
Thanks in advance.
Sorry to be so thick but what is the 6 month rule? Have never heard of this!!!
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All lenders now require you to have owned a property for at least 6 months before they will allow you to remortgage.I am a Mortgage Adviser
You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.0 -
Bridging finance
Yes, I have considered a bridging loan for them, it is just prohibitively expensive.
Having the mortgage signed, sealed and delivered after 3 months is ideal.
It sounds as though these mortgages are very rare, and the applicable terms are unlikely to be favourable.
6 month rule
Most mortgages are only available after 6 months from the time of choosing your last financing option. i.e. Bought house on Jan 1st for cash, you can only choose to mortgage the property after 6 months - July 1st.
If you arrange a mortgage, you also (generally) have to wait 6 months before being able to arrange a different mortgage.
In the case of a development, this is a real pain!I can take no responsibility for the use of any free comments given, any actions taken are the sole decision of the individual in question after consideration of my free comments.
That also means I cannot share in any profits from any decisions made!;)0
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