Will I be able to remortgage and repay my relative within 6 months?

Posted on 12 January 2013 by Matt


I am about to buy a house which is currently in two flats using a short term loan from a relative. When I complete, my solicitor will merge the deeds and I will, with a lawful development consent from the local authority, do sufficient but limited work on the house to return it to a single dwelling which I want to live in with my family indefinitely. I am nervous that I will not be able to get a residential mortgage 2 months after completion and will let down my generous relative. Do you think I will find more than one mainstream provider who will give me a mortgage? Thank you.

Matt,

There are three possible issues here. One is where the property hasn't been owned by you for 6 months. The second is if a lender classes the property as newly converted. Where lenders consider the property to be newly converted then the loan to value is a key factor in their decision to lend. The third is that some lenders would consider you repaying the genorosity of your relative as debt consolidation.

However despite these potential issues, as John Charcol is an Independent, Whole of Market broker, then I would be fairly confident that we could find more than one residential mortgage option for you.

If you would like to discuss your enquiry in more detail, then please let me know and I'll arrange for you to speak to one of our consultants.

Regards,

Simon

simon.collins@johncharcol.co.uk

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