Updated: February 16, 2022

Remortgaging Your Property Within Six Months Of Buying

Looking to remortgage within 6 months or less of buying your property? It can be done! Find out the rules, how to do it & who the main lenders are in our guide.

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Pete Mugleston

Author: Pete Mugleston - Mortgage Expert

Updated: February 16, 2022

The most popular time to remortgage  is when a current mortgage agreement is coming to an end, but there are numerous reasons why refinancing sooner might be appealing.

By reading this guide you’ll be able to better understand when remortgaging becomes an option, how soon is too soon, and what criteria you’ll need to meet to refinance early.

How soon can you remortgage?

In theory, you can remortgage any time after you officially purchase the property. However, most lenders are only open to remortgages once you’ve owned your property, and have been listed as the owner on the land registry, for at least 6 months. Following the financial crash of 2008, the Council of Mortgage Lenders imposed this 6 month mortgage rule to stop lenders potentially losing money when properties were being repeatedly sold within short ownership timeframes.

Most lenders follow the rule but a selection offer what’s called day-one remortgages, allowing you to remortgage a property any time after you’ve taken ownership.

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What to consider before you begin

Just because you can remortgage though, doesn’t mean it’s necessarily the best option. Usually, there’ll be early repayment charges to pay. The amount will depend on your lender and mortgage, but usually the fees are at their highest in the first year of ownership.

Other payments you’ll incur include the arrangement fee, valuation fee, legal fees, and the mortgage exit fee. Before you start the remortgaging process, it’s advisable to add all of these up and work out how much you’d be saving with a remortgage in the long term.

Keep in mind that it’s the overall cost that’s important. For example, there’s no point taking out a deal with low fees if the interest rate leaves you out of pocket in the long term.

When might a remortgage within such a short timeframe make sense?

Sometimes circumstances might mean you don’t have a choice in remortgaging – perhaps there’s been a job change and you can no longer make the current repayments or a big bill has come through and you need to free up some funds – but there are a few scenarios when refinancing a house not long after the purchase either needs to happen or could be financially beneficial.

  • You’ve bought a buy-to-let home, remodeled and now it’s now potentially worth a bit more, meaning you could get a better mortgage deal.
  • You obtained a standard mortgage but now want to rent out the property so need to switch to a buy-to-let mortgage.
  • You’ve bought a property that’s equity has increased since the purchase and you think there’s potential for a more favourable agreement. Perhaps it was a property you bought for a lower cost at an auction or through a repossession.
  • Something has changed in your financial or personal circumstances and it now makes sense to change your mortgage agreement accordingly
  • You took out a self-build mortgage and now the property is complete you need to remortgage it as a standard property.
  • You’ve inherited a property and want to transfer it into your name

How to remortgage within six months

If you need to refinance less than half a year into your ownership, follow these steps:

Step 1: Make sure your finances are in shape.

Just like when you applied for your initial mortgage, a lender will want to know how much you’re earning and spending, whether you’ve got any debt and what your credit history looks like. They’ll need to see three months’ proof of earnings, any bills and credit card statements as well as details of your outgoings.

You should also download your credit reports to challenge any inaccuracies and have any outdated information removed before you apply.

Step 2: Match with a specialist broker.

The remortgaging process can be a tricky one to navigate, especially if you’re trying to do it so soon after purchasing your property. Many of the brokers we work with are experts in remortgaging and will be able to improve your chances of getting a good remortgage deal.

The right broker will have deep working relationships with the lenders who offer remortgages after less than six months and will be able to match you with the best deal.

Step 3: Decide on mortgage type and lender.

A broker can advise on whether you should stay with the same lender – which can mean less paperwork – or switch to a different one. They’ll know which ones are open to remortgaging in less than 6 months of ownership. If you switch to a new one, be sure to engage a solicitor to complete the paperwork.

You’ll also have to choose between a capital repayment or interest-only mortgage type or perhaps you need a buy-to-let mortgage. This will be something you’d have thought about the first-time around but if circumstances have changed perhaps the best mortgage for you has too.

Step 4: Provide evidence.

Lenders will want to understand why you’re remortgaging and why now. If it’s because you’ve put some serious work into improving the property they’ll want to see proof of that work. If it was bought at an auction or was a repossessed property, they’ll need to know its current market value. Lenders usually survey the property to make sure it’s worth what you say it is. The fee for this will fall on you as the borrower.

For one-on-one support throughout this process, make an enquiry and get connected to an advisor. The brokers we work with experts when it comes to the remortgage process, regardless of how long you’ve owned your property.

Which lenders let you remortgage within six months?

There are certain mortgage lenders, including Virgin Money, HSBC and Santander for Intermediaries, who offer day one remortgages on a case-by-case basis provided their specific criteria is met. For example, Virgin Money will use the lower of either the original purchase price or current valuation when offering a mortgage loan, HSBC only works with certain brokers and asks that a solicitor “confirm the property was not purchased via a sub-sale style transaction,” and Santander for Intermediaries – who are only contactable through a broker – requests applicants be living in the property.

Factors that make a lender a little more open to a remortgage so early on include a low original mortgage in comparison to the current home value or vast improvements that have greatly impacted the property’s value.

Although these lenders usually consider early remortgages, approaching one of them directly is not recommended. This would limit you to just one set of deals and increase the likelihood of rejection or being lumbered with a high interest rate.

Using a specialist remortgage broker is a better alternative as this will open up an entire market to you, increasing your chances of securing the outcome you’re looking for.

How soon can you remortgage a buy-to-let mortgage?

If you already have a buy-to-let mortgage and are looking to make the switch the other way around, then the 6 month rule tends to hold tight here. Most buy-to-let lenders will want to wait at least over 6 months after the purchase date before they entertain remortgaging.

If you’re looking to switch to buy-to-let, this is also possible within six months but lenders tend to have a tougher criteria. For example, some have minimum age limits for this type of mortgage and others will deny the loan if you have multiple other buy-to-let mortgages.

Consult with a specialist remortgage broker

Whether it’s six months or six years into your agreement, to increase your chances of getting a great remortgage deal the best thing to do is engage a broker who knows the  market. They’ll be able to draw on years of experience in navigating the remortgage space, helping you to find a rate and deal you’re happy with with a lender that’s right for you.

The right remortgage broker can help you by providing the following services…

  • Assess whether a remortgage right now will be worth it for you in the long-term.
  • Determine if you’re eligible for a remortgage at this stage.
  • Examine whether the current lender or a new one will give you the best deal.
  • Talk you through the remortgage process.

Call 0808 189 0463 or make an enquiry and we’ll set up a free, no-obligation chat between you and your ideal remortgage mortgage broker today.

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We can help! We know everyone's circumstances are different, that's why we work with mortgage brokers who are experts in Remortgages Ask us a question and we'll get the best expert to help.

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Pete Mugleston

Pete Mugleston

Mortgage Expert

About the author

Pete, an expert in all things mortgages, cut his teeth right in the middle of the credit crunch. With plenty of people needing help and few mortgage providers lending, Pete found great success in going the extra mile to find mortgages for people whom many others considered lost causes. The experience he gained, coupled with his love of helping people reach their goals, led him to establish Online Mortgage Advisor, with one clear vision – to help as many customers as possible get the right advice, regardless of need or background.

Pete’s presence in the industry as the ‘go-to’ for specialist finance continues to grow, and he is regularly cited in and writes for both local and national press, as well as trade publications, with a regular column in Mortgage Introducer and being the exclusive mortgage expert for LOVEMoney. Pete also writes for OMA of course!

FCA Disclaimer

*Based on our research, the content contained in this article is accurate as of the most recent time of writing. Lender criteria and policies change regularly so speak to one of the advisors we work with to confirm the most accurate up to date information. The information on the site is not tailored advice to each individual reader, and as such does not constitute financial advice. All advisors working with us are fully qualified to provide mortgage advice and work only for firms that are authorised and regulated by the Financial Conduct Authority. They will offer any advice specific to you and your needs.

Some types of buy to let mortgages are not regulated by the FCA. Think carefully before securing other debts against your home. As a mortgage is secured against your home, it may be repossessed if you do not keep up with repayments on your mortgage. Equity released from your home will also be secured against it.

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