Day One Remortgaging Explained
The business finance broker team often hears from clients who want to remortgage straight after completing their house purchase.
This remortgage product is called a 'Day One Remortgage', and we have created this guide to explain what this remortgage is, and when it can be beneficial.
For more information about day one remortgages, or to start an application, call the team on 0330 304 3040 or drop us a message to [email protected].
What Are Day One Remortgages?
This type of remortgage is usually taken out as early as one day after your mortgage becomes finalised, and you are the new owner of a property.
Usually, a mainstream lender will place a minimum cap of around six months on a new mortgage, and sometimes up to a year. That means you cannot take out a remortgage with a high street provider within six to twelve months of completion.
The 'six-month rule' refers to a new policy imposed after the credit crash in 2008, with the idea being that homeowners need to be protected from the potential of negative equity.
In some cases, a day one mortgage might make sense - and there are lots of reasons why clients are looking for a day one remortgage.
Given the demand, several niche lenders do now offer this type of remortgage, which is provided within strict guidelines as set out by the Council of Mortgage Lenders (CML).
2023-05-09 
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