Avoiding the six-month wait to remortgage

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    Hello Friends....

    You should request a catalogue of the properties to be offered in the auction from the auctioneers, these will be printed and available weeks in advance to the auction date, this should give you enough time to inspect the property and the surroundings, and know how much you are will to purchase the property for in the auction. You need to make the financial arrangements prior to the auction, so that you will be able to pay a 10% deposit on the day of the auction, you should also have arranged a facility to be available for the remainder. Once you have made the initial deposit you then have a further 28 days in which you must make the payment for the remaining 90% of the property value



      All that's irrelevant...
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        Quick Buy to Let - Remortgage


        I bought a flat in Auction for good price (paid money using bridging finance) and spent money for refurbishment to get up to good standard for tenants (borrowed money from Friends & Families offcourse credit cards as well).

        Tenants moved and up to this stage is fine but now i would like to remortgage the property to pay the bridging loan and all debts costed.

        But I cant find a lender who can re-mortgage the buy to let flat within the six months of purchase ( I have completed the refurbishment in a one month time).

        If i wait for six months on Bridging loan...Its expensive.

        Any experiences on this. Its appreciated your advice.



          The six month rule is fairly standard practice amongst lenders, I'm afraid.
          'Pause you who read this, and think for a moment of the long chain of iron or gold, of thorns or flowers, that would never have bound you, but for the formation fo the first link on one memorable day'. Charles Dickens, Great Expectations


            Originally posted by dla View Post
            If you still need the name of a firm to use then PM me. I have used bridging in over half of the 40+ properties I have in my portfolio and the difference in speed and efficiency is huge.

            Once you get a good contact who delivers what they say, stick with them as Bridging finance companies are not FSA regulated so the quality of broker is (in my opinion) poor compared to regulated brokers.
            Exactly Iam doing the same, I am using Bridging company since 3 years and its working well...

            But only problem is with Re-mortgage , Banks asking to keep the property for six months before re-mortgage.

            Any commercial re-mortgage bank who does remortgage within six months of purchase

            waiting for advice


              All bridging lenders than lend against owner occupied property are required to be FSA regulated, those that are not can only fund B2L and commercial properties.

              The reason for the 6 mth delay in getting the bridge 'Exited' is primarily due to the fact that CML lenders have self imposed a 'rule' restricting funding to those who have owned a property for at least 6 mths. It is in fact only a guideline and not all lenders heed it.

              Bridging is a solution that can be expensive unless it is used correctly and personally I believe that there are only 3 scenarios when it should be considered:

              1) When there is a time issue, maybe a purchase at auction or a purchase that must happen before an associated sale takes place.
              2) When the property is being purchased genuinely under value and the mere fact of holding it for a short while will allow a conventional lender to fund the full value later, and
              3) Where the property value is going to be enhanced by refurbishment or planning

              Anything else may not make the most sense.

              As to lenders, there are loads but avoid those looking for upfront fees and expect interest rates between 1.25 and 1.75% per month. Do bear in mind also that most lenders take the full interest upfront so reducing the actual £££'s you receive and the last point is that most will value at what used to be called 'Forced Sale Value' which is now the 90 Day valuation. This can be up to 20% below current market values.

              There are few lenders who will lend purely on value and most expect borrowers to make some financial commitment themselves.

              Anyone looking for specific guidance by all means pm me and I can give you some pointers as to who to work with as some have a dire reputation.


                The relevant condition is in the CML handbook (Item 5.1) to be found here.


                The part 2 relates to the different CML members and suspect if a lender is not on the part 2 list they are not members and may be approachable about refinancing after the short period you have been bridging.

                Do check however that any interest prepaid on your bridge is refundable, often it isn't.


                  Property owned less than 6 months


                  I am looking to purchase a property with a buy to let mortage and a 30 percent deposit. My problem is that the Vendor has owned the property less than 6 months and therefore I have not been able to find a lender.

                  Can anyone please confirm if they know of a lender or if there is a way round this?

                  Thank you.



                    You might find some commercial lenders who will - NatWest for example via a broker.
                    Last edited by LandlordZONE; 07-07-2010, 13:44 PM.
                    Kind Regards,
                    David Croissant


                      Mike the main option is commercially as the only B2L lender that has relaxed this rule will only stretch to 65% LTV



                        Have you got a website address for this lender?



                          Originally posted by MICP View Post

                          Have you got a website address for this lender?

                          Northern Rock


                            Originally posted by dmc View Post
                            You might find some commercial lenders who will - NatWest for example via a broker.
                            Thanks for your info, Just contacted Natwest but they more hard to get.

                            Any commercial lender available pls

                            Look forward to u


                              Northern Rock allow a day1 Buy To Let remortgage and soem other lenders will consider it.

                              Speak with an independent mortgage broker to see what options you have as each lender will have their own set of criteria which you will have to satisfy for eg. min income levels, % of rental cover, number of properties owned etc etc.
                              Last edited by LandlordZONE; 15-07-2010, 11:01 AM.
                              Ronan Marrion is a specialist independent provider of , and is part of the Worldwide Financial Planning team of FT award winning Independent Financial Advisers based in the UK.


                                Several largely similar questions on separate threads have been merged into this thread (hence the repetitive nature of answers).


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