6 month rule

Reddevil2022

Can anybody advise if purchasing a property that has been owned for less than 6 months is it just the completion that has to be after 6 months, or even submitting an application? It's a concessionary purchase if this makes any difference! Thanks 

K_S

@reddevil2022 Depends on the lender, for some it's the date of application and for others it's the completion date.

FWIW, there are quite a few mainstream lenders who don't have an issue with considering purchases within 6 months subject to checking for things like sub-sales, distressed sales, etc.

Reddevil2022

Ok thanks! 

Reddevil2022

Just coming back to this, we are looking at proceeding with Nationwide. Does anyone know if we can submit an application prior to the 6 months, or do we need to wait until the property has been owned for 6 months? Can we submit and allow it to go to underwriters to make a decision? Otherwise we face another 2 month wait before we can apply! 

K_S

@Reddevil2022 I can't speak for the outcome of your specific case, but this thread should help with the question you've asked.
https://forums.moneysavingexpert.com/discussion/comment/79498877

Reddevil2022 said:

Just coming back to this, we are looking at proceeding with Nationwide. Does anyone know if we can submit an application prior to the 6 months, or do we need to wait until the property has been owned for 6 months? Can we submit and allow it to go to underwriters to make a decision? Otherwise we face another 2 month wait before we can apply! 

Reddevil2022

Thanks, although this looks specific to Halifax so I wondered if anyone had any experience with Nationwide in this scenario 

kingstreet

According to SmartR Criteria, there are seventeen lenders who don't apply this rule and Nationwide is one.

K_S

Reddevil2022 said:

Thanks, although this looks specific to Halifax so I wondered if anyone had any experience with Nationwide in this scenario 

@reddevil2022 I should've just quoted the relevant post in that thread

Reddevil2022

So good news, Nationwide have advised they will consider the application it will just be subject to further underwriting. Interestingly Halifax were a firm no and will not allow an application until the property has been registered with land reg for 6 months (so not from completion date). 
I havr another question which I may need to create a new thread for! Basically if the property is down valued and we need to select another product with a higher ltv, would the rate be based at the point of changing the product, or would the rate be backdated to the rate used at point of application? Hopefully this makes sense! Thanks 

K_S

Reddevil2022 said:

So good news, Nationwide have advised they will consider the application it will just be subject to further underwriting. Interestingly Halifax were a firm no and will not allow an application until the property has been registered with land reg for 6 months (so not from completion date). 
I havr another question which I may need to create a new thread for! Basically if the property is down valued and we need to select another product with a higher ltv, would the rate be based at the point of changing the product, or would the rate be backdated to the rate used at point of application? Hopefully this makes sense! Thanks 

@reddevil2022 Can't speak for Nationwide specifically or for how that might be treated at this point in time, but the last time I had this with a mainstream lender, they allowed me to pick a product from the product-guide that existed at the time of the application.