There are a number of reasons why a "Day 1 Remortgage
" would be taken out.
- You may have recently purchased the property for cash, either to beat out competition or due to purchasing at an auction.
- You may have inherited a property, or been gifted it.
- You may have realised you require more money to carry out improvements or repairs to the property.
Some lenders won’t look at your remortgage application if you have not owned the property for at least six to 12 months, but there are specialist lenders out there who will consider your application, providing there is evidence of the original purchase.
Why is there a 6 month rule?
It all comes down to individuals taking advantage of mortgage products that were readily available in the past, coupled with less regulation in the mortgage market. Customers would purchase property for under the value it was worth, either from a forced sale or using under-the-table cash. The property would then be remortgaged at full market value. Lenders had to cover their backs and stop lending in these circumstances.
Is there a chance I can get a day 1 remortgage? Certainly!
There are specialist lenders that will look at applications where a property has been inherited or bought for cash, but there can be difficulties, especially if trying to arrange a remortgage immediately. For advice on getting a day 1 remortgage, speak to one of our expert advisers who will be able to help you with the next steps.