Most lenders will say 6 months – doesn’t matter if you get a mortgage or buy for cash initially. But I’ve heard from a mortgage broker that as long as you buy with cash and you are applying for a mortgage using the same property value as you bought for then it shouldn’t be a problem.
This applies almost exclusively to BTL lenders. Main residential lenders are less pedantic in applying a restriction and commercial lenders don’t apply it at all.
BTL lenders apply broad brush T&C’s, the 6-month lending restriction is one. Simply, they can’t be arsed to differentiate their T&C’s according to the method of purchase, so the restriction applies regardless of whether you bought with cash, bridging, another mortgage.
Lenders also have a very simplistic view that the less money a borrower has invested in the property, the less motivated they will be to maintain the property in a good state of repair.
Is correctly to say that a very restricted number of BTL lenders do not impose this restriction but, while they will lend, they will also be adverse to lending to a borrower who is trying to get most of their cash out of a deal.
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