Raising capital on mortgage immediately after purchase? Bank say 6 months?!

Legacy_user

Situation

Current house selling for £200k (£115k still left on mortgage)
New house is £130k.


Looking to borrow £130k for new house,
Less The £85k already paid in mortgage
Plus £40k for home improvements and to pay off other loans
£95k Net


A well know bank has refused mortgage as they said we need to have owned the new property for 6 months before raising capital on it.


Any ideas?

minimike2

Your post isn't very clear.

Are you yet to purchase the house and need to raise a mortgage to buy it at the same time as you are selling your current property whilst retaining some cash for other purposes and the lender is insisting the use of all the equity from the current property to go into the new purchase (if that's the case I guess you are talking about HSBC), or are you trying to raise a mortgage on a property after having moved into it?

Most lenders will not allow you to immediately remortgage a property and the minimum occupancy period varies. If this is what you are trying to do you need to see a broker, however I can't tell if this is what you want to do from your post. There are plenty of lenders which will allow you to keep equity back for your home improvements and pay off your loans.

System

Thanks, yes "trying to raise a mortgage on a property after having moved into it?"

We need to buy 3-4 weeks before the current house is sold

Family member is going to loan us the money. And will be paid back once the old house is sold for £200k.

minimike2

This is not straightforward in a lenders eyes - Best advice is to get yourself a good mortgage broker.

Alternatively can you not hold off the purchase for those 3-4 weeks?

System

I agree, the seller of the new house wants the money asap

ACG

Most Mortgage lenders say 6 months. It can be doe though.

If you are wanting a short term loan until the house sells then you are looking at a bridging loan. Various options, but probably one for a broker.