It’s not uncommon for lenders to have restrictions on providing buy-to-let mortgages for properties that have been owned for less than 12 months. This is because they typically prefer properties with a longer ownership history to assess the stability and rental income potential accurately.
Whilst it’s true that some lenders do have this rule, there are a number who will waive it for properties that have been inherited. There are also other lenders who only require 6 months ownership, and some that don’t have any time limit.
Subject to meeting one of these lender’s criteria, you should be able to raise funds on a buy-to-let basis.
However, there may still be options available to you:
- Specialist lenders – some lenders specialise in providing mortgages for unique or non-standard situations, such as properties owned for less than 12 months. These lenders may have more flexible criteria or be willing to consider your application based on other factors, such as the property’s rental income and your financial circumstances
- Broker assistance – working with a mortgage broker who specialises in buy-to-let mortgages can be beneficial. We have access to a wide range of lenders and can help match you with lenders who are more likely to consider your application, given your specific situation and requirements
- Bridge financing – if you need funds urgently and cannot wait to meet the 12-month ownership requirement, bridge financing could be an option. Bridge loans are short-term loans designed to bridge the gap between the purchase of a property and securing longer term financing. However, bridge loans typically have higher interest rates and shorter repayment terms, so they should only be considered as a temporary solution
- Waiting period – while it may require patience, waiting until you’ve owned the property for at least 6 months before applying for a buy-to-let mortgage could be the most straightforward option. Once you meet the ownership requirement, you’ll have access to a wider range of lenders and potentially more favourable mortgage terms
Before proceeding with any financing option, it’s essential to carefully consider the terms, costs, and risks involved. Using a broker like John Charcol we can compare multiple lenders and explore all available options to find the best fit for your needs.
We can offer more advice on buy-to-let by reading our guide, alternatively if you would like to discuss your enquiry in more detail, then please speak to one of our independent mortgage advisers on 0203 868 9133.
