mortgage application after cash purchase

simpson_77

Hi,

I'm due to complete next week on a cash purchase of a property through auction that has a tenant. The plan is to mortgage the property ASAP and use the cash to purchase another property.

I understand most lenders want the property to be owned for 6 months before they will offer a mortgage. Does anyone know if there are any exceptions to this?

Thanks,

kingstreet

Yes. There are lenders who will do a day one remortgage. Chances are the auction purchase price will be taken as valuation so if you get it cheap it will impact the mortgage.

kingstreet

What are the tenant' rights?

Lenders are looking for an AST usually no longer than a year or two.

simpson_77

kingstreet said:

What are the tenant' rights?

Lenders are looking for an AST usually no longer than a year or two.

currently on a rolling monthly - but been assured they want to stay. 

simpson_77

kingstreet said:

Yes. There are lenders who will do a day one remortgage. Chances are the auction purchase price will be taken as valuation so if you get it cheap it will impact the mortgage.

would these be high street lenders or do you pay a higher rate for the convenience? 

kingstreet

BTL is mostly conducted by off-high street lenders via intermediaries.

A decent broker will establish the right lender and provide you with illustrates for the most appropriate products.