Mortgages - six month rule

[TheInternet]

I completed on a house purchase less than six months ago and would like to change to a different lender, however they will not entertain the idea due to the so-called 'six month rule'. As I understand it most mortgage lenders are unwilling to allow a remortgage to occur within six months of initial purchase. No doubt there are good reasons for this but it is proving a little frustrating.

Does anybody know if it is merely a gentlemen's agreement that can be circumvented, or if it's something more formal? Furthermore, will changing to a different mortgage product from my current provider cause the clock the reset? At the moment I'm just having to wait, but would switch to a better offering from my existing bank if it would not incur another six month delay.

Edited by TheInternet on Tuesday 6th August 12:13

[Sarnie]

The issue is not anything to do with the amount of time you have been with the lender, it's to do with the amount of time you have owned the property and complying with Fraud & Money Laundering regulations.

So if you changed lender the 'clock' doesn't start again.

This is something I can help with if you drop me a PM

[TheInternet]

Ok that makes a bit more sense. It sounds like I can switch to the more preferable offering from my current lender and then when my six months is up I can fix it elsewhere. Thanks for the explanation, it was a bit irritating to find the restriction, but with luck there will still be some good options around.

[Sarnie]

TheInternet said:

Ok that makes a bit more sense. It sounds like I can switch to the more preferable offering from my current lender and then when my six months is up I can fix it elsewhere. Thanks for the explanation, it was a bit irritating to find the restriction, but with luck there will still be some good options around.

I may be missing something but:

You bought a property with a mortgage within the last six months
You want to change that mortgage to another to get a better rate, within the first six months
You then want to change it again once you've owned the property six months

That would be three mortgages in just over 6 months??

[TheInternet]

Sarnie said:

I may be missing something but:

You bought a property with a mortgage within the last six months
You want to change that mortgage to another to get a better rate, within the first six months
You then want to change it again once you've owned the property six months

That would be three mortgages in just over 6 months??

You're missing the bit where I changed it once already, so that would make it four. The current lender have twice revised downwards their tracker rates since the original application in Jan; it is free to swap with no tie-in and takes minutes to do, so why wouldn't I? Then if/when I am able to find a suitable fixed rate I'll take it, and stop all the messing around.

[uuf361]

I've not moved lenders but have changed my rate with the lender 4 times in the first 7 months of my mortgageg.

Like the OP, the rate has been revised downawrads 4 times and I'm on a no fee, tie in product so have taken advantage each time the rate has decreased, saving £33k over the mortgage term.......