6 month rule - residential mortgage

homebuyer99

I am looking to proceed to the purchase of a house but my solicitor has picked up on the fact that the vendor has owned the house for less than six months.

He has refurbished it and is looking to sell it on.

Will this be a big problem with the lender and what is the best way around it?

Thanks

simonpoole

Take a look at Nationwide they have some great rates and they dont have a 6 month rule regarding ownership by the vendor.

The application may get referred when it comes to light that the vendor has owned for less than 6 months but as long as their is a good explanation such as refurbishment etc.. then they will be fine with it

kingstreet

The purpose of the six month rule is to prevent questionable "sub sales" or deals among people who know each other and which may be for the purposes of criminal activity.

In these circumstances, the lender will ask the solicitor to establish the bona fides of the sale and it should not be a problem when the vendor is a business carrying out its usual activity of property renovation and sale, particularly if it took the property in part exchange.

roonaldo

its a money laundering precaution

homebuyer99

Its santander what are they like with this?

Thrugelmir

homebuyer99 wrote: »

Its santander what are they like with this?

Ring them.

The six month rule was primarily introduced in response to anti money laundering legislation. This in the main is strictly enforced.