Can I get BTL 75% mortgage before 6 mths ownership?

[mattd1]

If so, any info? 

Will I be penalised on int rate? 

Demand higher deposit (so not 75%)?

Etc. 

Thanks all. (loving the forums and the podcasts - great info source, really enjoying it and lapping it up) 

[Simon Allen]

Hi Matt

There are plenty of lenders in the market who will look to remortgage within six months of ownership.

Some of them will base the mortgage on the purchase price, others purchase price plus any refurbishment costs and several on the end of value if a refurbishment can be evidenced.

75% mortgages are still available and there may be a slight premium on the rate however you need to balance that against getting the money earlier.

Always make sure the change of ownership at land registry has taken place as most lenders require this, although some just require additional documentation to start an application process off.

[stevewalker]

Matt

Your choice of lenders will be influenced by why you need to remortgage within  6 months of purchase.

For example some lenders will only accept it if the property has been inherited - these tend to be the mainstream lenders - lower rates

Others are looking to see that you have purchased and carried out demonstrable improvements - eg purchased with a bridging loan and now need to exit.

If its neither of these you are likely to be more restricted to 20 or so more specialist lenders - mostly available through brokers only.

You really need to speak to a specialist.

Of course if you are at an early stage and have not purchased yet then definitely speak to a specialist as he  / she may suggest an alternative approach - before you are committed 

Good Luck

Steve Walker

www.promisemoney.co.uk

(Specialist products for brokers and property investors)