Avoiding the six-month wait to remortgage

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  • Essence
    replied
    I have recently set up a property business and aim (after a lot of research (this being some) and a bit more saving) to start on the renovation ladder.

    Could you let me know more details on the criteria of potential mortgage co.'s that will look at re mortgage before 6 months of ownership (after renovation).

    I'd like to have a full understanding before making any moves.

    Leave a comment:


  • btlbrokerdeb
    replied
    Originally posted by usemobile View Post
    Thanks for your info, Just contacted Natwest but they more hard to get.

    Any commercial lender available pls

    Look forward to u
    There are commercial lender options available if you have bought the property below value in a poor condition and have renovated it to enhance the value. They will ask for evidence of works carried out, such as invoices from tradesment etc.

    There are strict criteria PM me if you want more specific information.

    Leave a comment:


  • Moderator1
    replied
    Several largely similar questions on separate threads have been merged into this thread (hence the repetitive nature of answers).

    Leave a comment:


  • Ronan Marrion
    replied
    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.

    Leave a comment:


  • usemobile
    replied
    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

    Leave a comment:


  • cfaproperty
    replied
    Originally posted by MICP View Post
    David,

    Have you got a website address for this lender?

    Thanks
    Northern Rock

    Leave a comment:


  • MICP
    replied
    David,

    Have you got a website address for this lender?

    Thanks

    Leave a comment:


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

    Leave a comment:


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

    Leave a comment:


  • MICP
    replied
    Property owned less than 6 months

    HI,

    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.

    Mike

    Leave a comment:


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

    http://www.cml.org.uk/cml/handbook/england

    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.

    Leave a comment:


  • cfaproperty
    replied
    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.

    Leave a comment:


  • usemobile
    replied
    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

    Leave a comment:


  • mind the gap
    replied
    The six month rule is fairly standard practice amongst lenders, I'm afraid.

    Leave a comment:


  • usemobile
    replied
    Quick Buy to Let - Remortgage

    Hello

    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.

    Rob

    Leave a comment:

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