Buy to Let remortgaging is now possible inside 6 months

by Neil Patterson

15:36 PM, 14th May 2012
About 6 years ago

Buy to Let remortgaging is now possible inside 6 months

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Buy to Let remortgaging is now possible inside 6 months

Mortgage Trust will now consider remortgaging a property inside 6 months of the date of purchase, but only if there have been significant improvement works carried out which have enhanced the property’s value.

If you have bought an investment property, and can demonstrate a detailed schedule of works, Mortgage Trust will subject to criteria allow you to remortgage within 6 months of purchase.

Up until now it has been standard policy for buy to let lenders not to lend on properties until you have owned them for 6 months unless the funds were for the original purchase. This industry wide criteria has been especially difficult for cash purchasers of auction property and development projects where the ability to refinance the asset to a buy to let mortgage has had to be delayed until after the 6 month period. This policy was brought into force after the credit crunch and down turn of house prices to avoid back to back remortgages and undeclared no money down deals.

An example product from the Mortgage Trust range is a

4.5% 2 year discounted tracker (LIBOR + 3.4%) reverting to LIBOR (currently 1.1%) plus 4.5%

Maximum 75% loan to value up to £500,000 with a minimum loan amount of £30,000 and minimum property value £70,000

Lender Product fee 3% of the loan amount

Early repayment charge is 5% of the amount repaid during the 2 year period

Overall cost for comparrison on an example £100,000 loan is 5.9% APR

This product allows you to borrow up to 192 times the monthly rental income of the property

If you would like to add your own requirements and search for the most popular available Buy to Let products please click here



Comments

Cindy Lee

20:44 PM, 14th May 2012
About 6 years ago

Never heard of mortgage trust. Is it a new lender?

Mark Alexander

22:01 PM, 14th May 2012
About 6 years ago

They have been around for several years, now wholly owned by the Paragon Group.


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