buying property

birdsfly43

When getting a mortgage from a bank, are you allowed to sell the property within a year or two of buying it?

Racml34

Yes but most lenders will offer a particular rate for a fixed term e.g 2 years. If you sell before this you would usually pay an early redemption fee which could be several thousand so it's not usually cost effective. Although you may be able to transfer the existing mortgage to another property

ValHaller

The biggest difficulty you may have is selling it within 6 months of purchase - buyer's mortgage lenders will not lend.

G_M

Racml34 wrote: »

Yes but most lenders will offer a particular rate for a fixed term e.g 2 years. If you sell before this you would usually pay an early redemption fee which could be several thousand so it's not usually cost effective. Although you may be able to transfer the existing mortgage to another property

All lenders will have a standard mortgage rate. On this, you can sell at any time without penalty.

Most lenders also offer a variety of special deals eg discounted rates, or fixed rates, which last for a set period of time (6 months, 1 year, 3 years whatever). If you redeem (pay off) the mortgage during this period, there is a penalty (early redemption fee).

Riggster

ValHaller wrote: »

The biggest difficulty you may have is selling it within 6 months of purchase - buyer's mortgage lenders will not lend.

This is not necessarily true. I'm close to completing on a property that the vendor purchased at the start of April.

There had been a small fire, so the vendor has purchased it, has undertaken the necessary cosmetic repairs, generally tidied the property up and is selling it to me (for an annoyingly large profit).

My mortgage provider are fine with this when we (my conveyancing solicitor) explained the circumstances.

My mortgage is with a small building society from the North East of England. I understand that larger lenders such as the Halifax or Natwest almost certainly wouldn't lend on a property that had been bough and sold within 6 months.

kingstreet

There are a few lenders who don't operate the "six month rule" but is a buyer likely to know the rule even exists?

It would be very easy to do all the legwork with a lender, pay valuation and arrangement fees, then be told later in the process they can't proceed. The check on ownership isn't carried out until after hundreds of pounds have been spent.

ValHaller

Riggster wrote: »

This is not necessarily true. I'm close to completing on a property that the vendor purchased at the start of April.

There had been a small fire, so the vendor has purchased it, has undertaken the necessary cosmetic repairs, generally tidied the property up and is selling it to me (for an annoyingly large profit).

My mortgage provider are fine with this when we (my conveyancing solicitor) explained the circumstances.

My mortgage is with a small building society from the North East of England. I understand that larger lenders such as the Halifax or Natwest almost certainly wouldn't lend on a property that had been bough and sold within 6 months.

Yes, a sale by a developer where there is actual evidence of work is likely to be accepted as an exception to my broadbrush picture. Given the lack of detail in OP's question, they do need to take into account that a quick resale may require a cash buyer.