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6-month rule and mortgage deal switch
inkydolphin
Posts: 227 Forumite
Hi, I'm trying to find out if the 6-month mortgage rule has any effect when you switch mortgage deal (with the same lender).
e.g. your fixed deal ends on 31 August so you switch to a tracker mortgage on 1 September. If you then sell your house and pay off the mortgage in full in December, does the 6 month rule have any effect on you or the buyer of your house? Or does the 6-month rule only apply from the time you buy the house in the first place?
Probably a daft question but having trouble finding out.
e.g. your fixed deal ends on 31 August so you switch to a tracker mortgage on 1 September. If you then sell your house and pay off the mortgage in full in December, does the 6 month rule have any effect on you or the buyer of your house? Or does the 6-month rule only apply from the time you buy the house in the first place?
Probably a daft question but having trouble finding out.
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Comments
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This. Not sure where you've got the idea that it's something to do with the seller's mortgage? Your buyer has no idea what deal you're on, it's nothing to do with them.inkydolphin said:
Or does the 6-month rule only apply from the time you buy the house in the first place?1 -
Thanks. I thought I might have got the wrong end of the stick. Just trying to trawl through all the info out there and had a sudden pang of worry about the whole thing 🙂user1977 said:
This. Not sure where you've got the idea that it's something to do with the seller's mortgage? Your buyer has no idea what deal you're on, it's nothing to do with them.inkydolphin said:
Or does the 6-month rule only apply from the time you buy the house in the first place?0 -
The six month rule can be an issue for the buyer is you have recently changed mortgage company. By switching rate with the same Lender your mortgage has not changed.
You do, of course, need to be sure you will not be caught out on early redemption charges on sale as a result of being on a new product.
I am a Mortgage Broker
You should note that this site doesn't check my status as a Mortgage Broker, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.1 -
For their Lenders and by definition, the buyers
https://forums.moneysavingexpert.com/discussion/6466012/halifax-mortgage-offer-approved-but-6-month-rule
I am a Mortgage Broker
You should note that this site doesn't check my status as a Mortgage Broker, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.0 -
That thread's about less than 6 months ownership by the seller, not the seller having remortgaged within the past 6 months.amnblog said:For their Lenders and by definition, the buyers
https://forums.moneysavingexpert.com/discussion/6466012/halifax-mortgage-offer-approved-but-6-month-rule0 -
Had a case not long ago where the sellers had remortgaged very soon before selling and it caused quite sizeable delays as the new lender hadn't been updated at land registry. The sellers had used a free legals service for the previous remortgage who were less than helpful in getting a resolution. Too many solicitors involved really. If the remo was done by the same one that was doing the sale it would have been easily resolveduser1977 said:
Not something I've ever heard about - a problem for buyers? Or their lenders?amnblog said:The six month rule can be an issue for the buyer is you have recently changed mortgage company.1
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