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6 month wait for mortgage?

mastermark_2
mastermark_2 Posts: 5 Forumite
in Mortgages & endowments
Hello all, advice needed.

My wife and I moved into our own property in December which we bought outright. I phoned my bank (Halifax) to discuss booking an appointment to arrange a re-mortgage on the property to start doing buidling works, but was told due to money laundering laws I have to live here for 6 months! Does anyone know if there is a way around this foolish rule? After all we do own the property so I don't see what the fuss is!


Thanks in advance
Mark and Eve
«1

Comments

  • somethingcorporate
    somethingcorporate Posts: 9,449 Forumite
    Most re-mortgages require you to have lived in the property for more than 6 months.

    It may be different if you want to extend/top up your existing mortgage though, did you suggest this to them?
    Thinking critically since 1996....
  • kingstreet
    kingstreet Posts: 39,316 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Photogenic
    It could have been worse.

    If you were selling, your buyer may not be able to get a mortgage if you haven't owned it for six months or longer.

    There are lenders who don't operate the six month rule. If you are set on using Halifax, you'll have to wait though.
    I am a mortgage broker. 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. Please do not send PMs asking for one-to-one-advice, or representation.
  • Thrugelmir
    Thrugelmir Posts: 89,546 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Photogenic
    mastermark wrote: »
    After all we do own the property so I don't see what the fuss is!


    Money laundering regulations. Potentially releasing funds from assets from money is owed to creditors. There's quite a few reasons.

    So easier for lenders to maintain a 6 month window,
  • GMS
    GMS Posts: 5,388 Forumite
    Part of the Furniture 1,000 Posts Combo Breaker
    If you are not requiring Halifax then speak to a broker. May well be a lender for you.
    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.
  • Let_Us_See
    Let_Us_See Posts: 1,319 Forumite
    Six month residency rule has nothing to do with money laundering otherwise all lenders would be tied by the same rule. Basically, introduced to stop the "churning" of property especially by developers. As already pointed out there are lenders who will consider a re-mortgage within six months, but not Halifax.
  • Thrugelmir
    Thrugelmir Posts: 89,546 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Photogenic
    Let_Us_See wrote: »
    Six month residency rule has nothing to do with money laundering otherwise all lenders would be tied by the same rule.

    Which lenders allow instant remortgaging?
  • mastermark_2
    mastermark_2 Posts: 5 Forumite
    Thanks for the responses guys, can anyone recommend someone/company I can approach?

    cheers
  • Let_Us_See
    Let_Us_See Posts: 1,319 Forumite
    AH! That's what separates the men from the boys. ;) Oh! Plus 23 years experience.
  • GMS
    GMS Posts: 5,388 Forumite
    Part of the Furniture 1,000 Posts Combo Breaker
    mastermark wrote: »
    Thanks for the responses guys, can anyone recommend someone/company I can approach?

    cheers

    I would suggest speaking to a broker. Banding about lender names without knowing your circumstances is unfair.
    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.
  • ViolaLass
    ViolaLass Posts: 5,764 Forumite
    Let_Us_See wrote: »
    Six month residency rule has nothing to do with money laundering otherwise all lenders would be tied by the same rule. Basically, introduced to stop the "churning" of property especially by developers. As already pointed out there are lenders who will consider a re-mortgage within six months, but not Halifax.

    Why would lenders care about that? Isn't it more money for them (from fees)?
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