Are the days of day 1 remortgaging gone? The answer to that is "yes" and "no".
Back in the day (pre 2008) it was possible to buy a property and the next day remortgage it again. The purpose of doing this was mostly to buy a property for a below market value (BMV) e.g £75,000 and remortgage it knowing it was actually worth £100,000 and borrow 75% e.g. £75,000. There you go you have a 100% mortgage and you have put NO money into the deal! Not surprisingly these were abused and put to a stop by mortgage lenders post 2008.
The good news is that some mortgage lenders now accept day 1 remortgaging again! Great news! However, this is mostly for people who have inherited a property or have purchased a property and then greatly improved the property to make it worth more. If you need help, submit your details for a chat with a regulated mortgage broker.
If you are interested in financing a below market value purchase, get in touch for a free chat with a regulated mortgage broker, just submit your details on the from to the right!
The expertise of a mortgage broker could be priceless. The difference between a standard mortgage variable rate of 4% and a new mortgage deal of 2% is £103.99 per month* that’s £1,247.88 per year or £31,197 over 25 years!
Whatever your situation, give us a call or submit your details for a callback.
*Illustrative example based on a borrowing amount of £100,000, over a term of 25 years.