If you’ve bought a property through an auction, one that’s been repossessed or you’ve secured one at a discounted price through a private sale, you may be wondering if you can remortgage within six months of purchasing the home.
An immediate remortgage could potentially lead to large savings, especially if the original purchase was below market value.
Can I remortgage within six months of purchase?
It is possible to remortgage within six months of buying a property. However some lenders may not finance the property unless it’s been owned for a minimum of six months.
You should also consider the costs that are associated with remortgaging a property. If significant savings can be made, then it may still be worth doing.
Here are some situations where you may want to remortgage within six months of purchase:
– You’ve purchased and refurbished a buy-to-let property and want to remortgage using the increased market value. You may want to release some of the equity to purchase another property.
– The property has significantly increased in value and you are hoping to get a better interest rate by remortgaging
– Your financial situation has changed and you are hoping to get a better mortgage deal
– You have built a self-build property and are looking to remortgage onto a standard residential deal.
How to remortgage within six months of purchase – what you need to know
If you have renovated your property, you may get a remortgage based on the increased valuation. For this you’ll be expected to provide evidence of the completed work. However, not all renovations will add value to a home. Its worth bearing this in mind before starting any works, especially if you are doing it for profit.
If your home has increased in value since purchasing, a lower loan to value should open up more favourable deals. However, obtaining one will depend on the lender. Many lenders won’t remortgage a property unless you have been registered as the owner for a minimum of six months.
If you’ve taken on a mortgage recently, this isn’t a guarantee that you’d be accepted again within six months of purchase. You’ll still need to undergo the relevant credit checks and affordability checks that a lender expects.
To get help with remortgaging your property, it may help to speak to a mortgage broker. Using their knowledge of the market, they’ll be able to help you find the lenders that are likely to accept your application.
The above post does not constitute advice – financial, legal or otherwise. The information within this article is the author’s own opinion and do not necessarily reflect the views of SO Media or So Smart Money.
THINK CAREFULLY BEFORE SECURING OTHER DEBTS AGAINST YOUR HOME. YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE