Time property owned before remortgage allowed - please advise!

feelreal

Hello all

I am a new poster here and was wondering if anyone can help, really appreciate any feedback.

I have very recently purchased a property outright (just a small place) which will be my residence (not a buy-to-let).

I am looking to raise a mortgage on the property of around 40% LTV to fund refurbishment and a couple of other things.

It will be a remortgage as no mortgage was used for purchase.

It appears that number of lenders have a rule that you must own the property for 6 months before a remortgage can be authorised. This appears to be quite a new rule.

Does anybody know any lenders who don't have such a rule? I am keen to get the mortgage in place ASAP and commence the refurbishment.

Thank you, F.

Dan_1976

Hi

I think Platform may do, you may need a broker to help you.

Other than that I am not 100%. However anti fruad policies now state 6 months in most cases.

noh

But it isn't a remortgage as there is no existing one.

VIGILANT22

Nationwide have been one of the few lenders recently to do this with no time restrictions...however....they revised criteria last week and I don't know if this is still the case.........

happybroker

Platform will look at it if it's your main home, Nationwide don't ahve anything obvious in their policy saying no but your adviser would need to check with them prior to submitting an application.

However, the property will need to be mortgageable for you to do this, ie kitchen and bathroom in there though they can be in any old state. Otherwise you would be looking at bridging finance and then remortgaging to clear that.....this is a pretty/ very expensive way of doing things though.

It will be an idea to get some advice from a good broker on this one I feel.

feelreal

Thanks for your replies, I will try Nationwide and Platform.

All other suggestions gratefully received!

tabskitten

why is it a re mortgage and not just a loan?

happybroker

tabskitten wrote: »

why is it a re mortgage and not just a loan?

It is a loan but is secured to the property by way of a legal mortgage. Mortgages are split into 2 broad categories, purchase loans and re-mortgages. It matters not that there isn't a mortgage at the moment.

Re-mortgages often come with incentives such as free valuations and free legal fees so perhaps best not to knock it me thinks.

Dan_1976

Its weird, from memory re-mortgage or remortgage is a made up word, well its Mortgage with Re in front of it! Invented when remortgaging became the next best thing. I cant see why it took off, I would much rather sit on the SVR for the rest of my life!!

Mortgage is a very old word. I think my lemsip flu plus is making my head go funny!!!

Quote:
Strangely enough, the word mortgage comes from the French word “mort” which means “dead” and “gage” from Old English, which means pledge. The term came from the doubtfulness of whether or not the mortgagor would pay the debt. In the 1500’s, if the mortgagor did not pay, then the land pledged as security for the debt was taken away. The land was then considered “dead” to the mortgagor. Nowadays, the term mortgage is used as a term for purchasing a property. We no longer associate anyone’s death with it.

VIGILANT22

Remortgaging took off because historically a mortgage lender’s SVR was relatively high. This was most profitable to lenders, as they relied on the apathy of borrowers to stay put once the introductory deal was over.

Dan_1976

I was being funny V.

When I worked in a BS I was always surprised at howmany people sat on the SVR for 25 years! The amount of people I talked to around 1999-2000 and changed a product for them, they seemed to think you had no choice! Remortgage's took off alittle before this to. Mainly older people, people do not realise how lucky we are, so much more financially aware, then again, my Grandad never had debt and always used cash and never got in to trouble!