Day 1 Remortgages

What Is a Day 1 Remortgage?

A Day 1 remortgage lets you refinance your property as soon as you’ve bought it—no waiting around for six months like many lenders insist. If you’ve paid cash, inherited a home, or need to switch from a short-term loan, a Day 1 remortgage could be the answer.

What Is the 6-Month Rule for Remortgages?

The 6-month rule is a policy many lenders follow requiring homeowners to have owned a property for at least six months before applying for a remortgage. This rule intends to prevent fraudulent transactions through inflated prices and rapid property flipping.

For most lenders, the six-month rule is all about managing risk. However, specialist lenders exist for people who don’t fit the ‘traditional’ remortgage mould and will consider applications for recently purchased properties.

Why Would You Need a Day 1 Remortgage?

A Day 1 remortgage can be a lifeline in a few key situations:

• Releasing Equity Quickly. If you recently bought a property with cash or inherited a home, a Day 1 remortgage lets you release equity without having to wait, giving you access to funds for reinvestment or covering renovation costs, for example. 

• Refinancing Short-Term Loans. Bridging loans and private finance can be great for securing a property quickly—say, at an auction—but they typically have high interest rates. Refinancing to a mortgage with better rates and terms is a popular exit strategy.

• Funding Home Improvements. Your dream home might need some serious work. A Day 1 remortgage can unlock the cash to refurbish it immediately, helping you increase its value sooner rather than later.

• Consolidating Debt. If you’ve used personal loans or credit cards to buy a property, a remortgage could help bring your monthly payments down by consolidating everything into a lower-interest mortgage.

How Quickly Can You Get a Remortgage?

If you’re eligible, initial approval for a Day 1 remortgage can take as little as 24 hours to two weeks, depending on the lender and how quickly you can provide the required documents. 

Full completion can take longer—up to twelve weeks in some cases, depending on the complexity of the application (e.g., if there are any bad credit issues or the property is of non-standard construction).  

Working with an experienced broker can speed up the process and ensure you’re matched with a lender who looks more favourably on these types of remortgages.

How Much Can You Borrow for a Day 1 Remortgage?

The amount you can borrow depends on your loan-to-value (LTV) ratio and affordability assessment. Most lenders offering Day 1 remortgages allow borrowing up to 75%-80% of the property’s market value. However, some specialist lenders could go higher and will assess each application on a case-by-case basis.

Lenders will typically consider:

• Your income and employment status

• Your credit history

• Existing debts and financial commitments

• The purpose of the remortgage (equity release, refinancing, etc.)

Which Lenders Offer Day 1 Remortgages?

Not all mortgage lenders offer Day 1 remortgages, but we work with several specialist lenders who have an exceptional track record of accepting these types of applications, including (but not limited to): 

• Bluestone Mortgages

• Together Money

• Vida Homeloans

• Buckinghamshire Building Society

• The Mortgage Lender

These lenders only operate through brokers (like us!). Our Mortgage Experts have a clear understanding of each lender’s specific eligibility criteria. If you get in touch, a member of our mortgage team will contact you to get your remortgage application started. 

How to Get a Day 1 Remortgage

To help speed up the process, it’s a good idea to have all the necessary documentation prepared beforehand. Here’s what a mortgage lender will want to see: 

Proof of Ownership

Lenders need to confirm you legally own the property and will likely ask for the following: 

• Title deeds from the Land Registry (if the database has been updated with your details)

• Letter from the solicitor used to complete the purchase (if Land Registry database has not been updated)

• Proof of purchase (like a completion statement)

• Evidence of how you acquired the property (e.g., inheritance documents, auction receipts, or proof of cash payment)

Proof You Can Afford It

Lenders will check you can comfortably make repayments. Be ready to provide:

• Payslips or tax returns (if self-employed)

• Recent bank statements

• A breakdown of your regular spending

A Healthy Credit Record

A good credit score improves your options as it will increase the number of lenders willing to consider your application. If yours isn’t great, don’t panic—several lenders we work with specialise in bad credit remortgages, but you may face higher interest rates and potentially lower borrowing limits.

The Right Mortgage Broker

Most lenders offering Day 1 remortgages don’t deal directly with borrowers. A good broker (like us!) will match you with the right lender and ensure that your application is prepared correctly with all the necessary evidence and documentation. 

The risks of a Day 1 remortgage

Like any financial decision, it’s important to weigh up the pros and cons, and there could be some potential downsides to this type of refinancing, such as:

• Higher interest rates. Day 1 remortgages are considered a bigger risk by lenders, so rates might be slightly higher than a standard remortgage. But with the right lender, healthy equity in the property and a good credit record, you can still secure a competitive remortgage rate. 

• Loan-to-Value (LTV) Limits. If you’ve initially bought the property using cash reserves and are looking to recoup the full market value, this may not be possible straight away. Most lenders will offer an LTV of between 75% and 80%, but some could go higher depending on the strength of your overall application. 

• Early Repayment Charges. If you’ve used a home loan to purchase the property initially, there could be charges applied for remortgaging so early, particularly if it was tied to a fixed rate for a set period.