Mortgaging immediately after cash purchase

Ozymandias88

I'm sure there is a very obvious answer to this question but I am a bit of a mortgaging novice............

I am in the process of buying a house (exchanged a few days ago), for the sake of a quick sale and to put ourselves in a better bargaining position it's going to be a cash purchase.

We intend to make some improvements to make it more suitable for our first baby which is due in November :j :j r; in order to do this we want to take out a (relatively) small mortgage against our new house.

We're looking at a £25K to £30K mortgage but I'm not sure when we can apply for a mortgage (on a place we don't yet own!) and how long after completion it will take for the money to come through. The LTV is going to be very small (the place is valued at £925K) and the salary multiple is small also (joint wage of £65K altho 25K of that is my wifes and she's going to be quitting work in September for at least a year) so I'm confident of getting a mortgage no problem but am more wondering about the timescale.

I don't know how long after the purchase all the neccassary records and deeds indicate that we own the property and are therefore able to borrow money against it, or if we have to have completed before we can even apply.

As I said, bit of an amateur question but I have been lurking round here for a while and found this site to be very forgiving towards novices like me:p

Thanks in advance for any advice...............:T

Dan_Collins_2

3 months, lender dont like fast turn arounds on remo's after a purchase. I thihnk I have read you post right?

mightymouse

Hi

Ring a few mortgage advisors and ask if they know who will do a 'day 1 remortgage'

I could mention one or two but these are the high street lending idiots funding 'buy and rent back'

Ozymandias88

Dan_Collins wrote: »

3 months, lender dont like fast turn arounds on remo's after a purchase. I thihnk I have read you post right?

I think you have read it right, altho would it be considered a remortgage if no original mortgage was needed?

tinkerbell84

Ozymandias88 wrote: »

I think you have read it right, altho would it be considered a remortgage if no original mortgage was needed?

Yes, because there isn't a change of ownership.

Ozymandias88

Dan_Collins wrote: »

3 months, lender dont like fast turn arounds on remo's after a purchase. I thihnk I have read you post right?

do you know why that is?

Dan_Collins_2

Yep, they have been stung by fraudsters! Mainly in the new build market and large developements, so they are now very careful.

I doubt than anyboday would do a day 1 completion?

Ozymandias88

Dan_Collins wrote: »

Yep, they have been stung by fraudsters! Mainly in the new build market and large developements, so they are now very careful.

I doubt than anyboday would do a day 1 completion?

Thanks for that; not sure how I could be defrauding anybody if the house is in my name with a clear payment trail but understand lenders need to protect themselves

so essentially I can't do anything until I've been living there for 3 months?

Beginning to regret not taking out a mortgage beforehand now.

dimbo61

hi ozymandias88
consider an offset mortgage as you could offset the whole mortgage
with the money you have just borrowed from the lender until
you need that money to pay for the building work!
some lenders have a minium lend amount usually £30/40k so with an
offset you only need to take out the money as the building work starts
and you have a pool of money to pay for each stage without paying
interest on the lot. GOOD LUCK

Ozymandias88

dimbo61 wrote: »

hi ozymandias88
consider an offset mortgage as you could offset the whole mortgage
with the money you have just borrowed from the lender until
you need that money to pay for the building work!
some lenders have a minium lend amount usually £30/40k so with an
offset you only need to take out the money as the building work starts
and you have a pool of money to pay for each stage without paying
interest on the lot. GOOD LUCK

hi there, thanks for that; my main concern is that it appears from previous answers here that lenders won't consider lending to me immediately after having bought.

I don't need the money immediately after moving but within a few weeks would be good; as per the answer a few posts up lenders are apparently not keen on lending on properties straight after purchase, even those not bought with a mortgage. Not sure what I can do that doesn't entail waiting 3 months.

Dan_Collins_2

You are not defrauding anybody, but it opens the lender up to it, so they stop it full stop.

You can start the process, some lenders will let you make the application.

You will need proof of address so make sure you get that sorted asap.