Tracker Mortgages

Let_Us_See

Blimey.....if we all started "what ifs" scenarios we will be here all night (and day). Time for bed!

Thrugelmir

Let_Us_See wrote: »

Blimey.....if we all started "what ifs" scenarios we will be here all night (and day). Time for bed!

6 month rule is in place to counter fraud (of various kinds). Simple as that.

Let_Us_See

Nothing to do with fraud - simply introduced to stop developers churning mortgages on properties they can't readily sell and this ultimately affects everyone.

kingstreet

Let_Us_See wrote: »

Blimey.....if we all started "what ifs" scenarios we will be here all night (and day). Time for bed!

I thought it was a good idea to clarify to Yorkie how some lenders view the six month "rule" as he'd raised the issue. It may have no impact on the OP, but as the matter had already been started it seemed appropriate to clarify it.

Wywth

Let_Us_See wrote: »

There is nothing to stop you completing your plan exactly as you describe. Similarly, a lender cannot force you to immediately move into the property following completion as many will testify.

Unless the solicitor gets wind of this (and he almost certainly will!) before the mortgage is given (i.e completion date), and tells the mortgage provider as they would be bound to do.

If this comes to light late in the process, and results in the mortgage offer being withdrawn between exchange and completion, the OP will be left up the proverbial creek.

The mortgage provider will probably also need to be informed if the OP does not intend to occupy the property as it will invalidate the insurance. Of course the OP could obtain insurance elsewhere, but most mortgage providers will want to see proof of this ... and if it is not insurance for an owner occupier, alram bells will ring again.

Thrugelmir

Let_Us_See wrote: »

Nothing to do with fraud

Sale of property between colluding parties is an easy way of defrauding a lender. Chelsea Building Society springs to mind for sizable losses.

Let_Us_See

There are many reasons why people don't move into a property following completion - the main one being renovation/re-decorating work. For others it could simply be a second home. I have never, ever seen an offer of mortgage that states the property has to be immediately occupied following completion.

What the OP is asking is perfectly feasible and a fairly normal occurrence, and building insurance will be perfectly valid as most policies cover absences of up to 30 or 60 days. In fact the poster will be at the property carry out renovations and there are no conditions that forces him to sleep overnight at the property.

Let_Us_See

Thrugelmir wrote: »

Sale of property between colluding parties is an easy way of defrauding a lender. Chelsea Building Society springs to mind for sizable losses.

Some people should lighten up on these forums. What fraud, what collusion? The poster merely intends to buy a residential property, renovate it and sell it. What is the problem with that? Isn't that what happens to 99% of home owners? OK, in this case the time frame maybe shorter, but no rules are being broken and we don't owe lenders a living. They produce T & Cs and it is simply a case of working to someone's advantage within those rules.

chimmychango

Thanks everyone for your input.
Lots of good points raised for me to think about.

bigadaj

Let_Us_See wrote: »

Some people should lighten up on these forums. What fraud, what collusion? The poster merely intends to buy a residential property, renovate it and sell it. What is the problem with that? Isn't that what happens to 99% of home owners? OK, in this case the time frame maybe shorter, but no rules are being broken and we don't owe lenders a living. They produce T & Cs and it is simply a case of working to someone's advantage within those rules.

You're the only one who seems to be getting wound up, other comments are valid as the OP has said and are worthy of consideration. We live in such a victim culture after all that pointing out potential problems and risks is rarely a bad idea so long as they put I. Context.

If your a broker, as in your comment about seeing many mortgage applications, then it would be better if this was stated.