Cash purchase,mortgage later.

tunnel

Good evening,

I'm after a little bit of advice. I'm buying a house. The seller wants a quick sale and has given me a short deadline to complete(before christmas). Now...I've applied for a mortgage,got the AIP and started the ball rolling. Thing is, if the mortgage doesn't come through in time, i can still purchase the house with cash but have been told there is then a time limit on then re-mortgaging the house if i have to take this route. Is this right(told 6 months ownership) Must add the mortgage i'm after is a BTL.

Can anyone clarify if this is right.

Before anyone asks the cash has to paid back(not all mine) so i will need a mortgage

Thanks

Tunnel

Thrugelmir

tunnel wrote: »

Before anyone asks the cash has to paid back(not all mine) so i will need a mortgage

You'll struggle to complete before Xmas.

What are your plans if obtaining a mortgage is not possible? i.e. if you borrow the cash to complete the purchase.

GMS

Speak to a broker to see how to proceed if you need to refinance after a cash purchase.

There are lenders who will consider it.

tunnel

Thrugelmir wrote: »

You'll struggle to complete before Xmas.

What are your plans if obtaining a mortgage is not possible? i.e. if you borrow the cash to complete the purchase.

I don't envisage any problems obtaining a/the mortgage. My rental once purchased even with a hypothetical 100% mortgage(i know its max 75%) would be 200%+ of any mortgage payment(i really do my homework)

guess i'll have to take GMS's advice and go to a broker again if need be.

As a matter of interest Thrugelmir,why do you think i'll struggle to complete before crimbo. I've completed in 3 weeks before from offer to purchase(just have to plague the hell out of the solicitors)

Tunnel

Thrugelmir

tunnel wrote: »

As a matter of interest Thrugelmir,why do you think i'll struggle to complete before crimbo. I've completed in 3 weeks before from offer to purchase(just have to plague the hell out of the solicitors)

Only 12 working days at best and you haven't received a mortgage offer as yet.

tunnel

Thrugelmir wrote: »

Only 12 working days at best and you haven't received a mortgage offer as yet.

Yeah fair comment,guess i'm just used to everything going smoothly

Goldiegirl

After working in the lending department of a bank for many years, it seems there's a need in people to complete before Christmas. I think they feel they'll enjoy Christmas more if their business is concluded. Most solicitor will stop work on 21st December, so I think the seller may be a bit unrealistic with the deadline.

And yes, if you buy with cash, I believe you will need to own the property for 6 months before you can use it as security to raise a mortgage.

GMS

Goldiegirl wrote: »

And yes, if you buy with cash, I believe you will need to own the property for 6 months before you can use it as security to raise a mortgage.

Maybe with the lender you worked for but not with all.

Goldiegirl

Things could have changed in the last three years anyway

tunnel

GMS wrote: »

Maybe with the lender you worked for but not with all.

Thanks,
thats really what i was looking for,current mortgage application is with virgin,do you have any experience with them at all(speed more than anything). I have also questioned them about re-mortgage rather than new purchase if necessary,all they say is i'll have to re-apply,i'm tempted to put the application on hold,pay cash,then remortgage in the new year.

Tunnel

GMS

Virgin are quite thorough with their underwriting. If all info is in on day 1 they will issue offer pretty quick. If not they request further info and check it a week later.

They will consider refinancing prior to 6 months ownership with some restrictions.

Have a chat with a broker or direct with Virgin to crunch numbers. If speed is vital then cash may be the way. Some products offer cashback which may well offset the legal costs for remortgaging.