Remortgage to release cash

Answered on 2 January 2018 by Nick Morrey

I have seen a house which I would like to purchase, but the seller wants a quick sell. My parents are willing to lend me the money to pay cash (£430K) for the property, but I need to know when I'd be able to remortage to pay them back. I would want to remortgage for £300k.

Typically with most lenders, you'd have to wait a minimum of 6 months from the date the property is registered in Land Registry, before you could remortgage to repay your parents. Assuming the process takes no longer 2 months, your parents should be able to receive their money back in 8 months. There are those who who will look at what is known as a 'day one' remortgage, but this would limit your choice in the market.

Learn more about remortgaging through our guide

Also it is well to be aware that re-financing a property will also depend on the property type (newly built may have restrictions on loan to value), purpose (main residence or investment) as well as your personal and financial circumstances. I would also reccomend getting a survey done to make sure the property is a suitable security.

Answers provided in response to Ask the experts are based on the information provided and do not constitute advice under the Financial Services & Markets Act. They reflect the personal views of the authors and do not necessarily represent the views, positions, strategies or opinions of John Charcol. All comments are made in good faith, and John Charcol will not accept liability for them.

We recommend you seek professional advice with regard to any of these topics where appropriate.


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