Buying a house with cash, then applying for mortgage in 6 months?

[MeMeMeow85]

Has anyone bought a property with cash and then applied for a mortgage a few months after completion?

Wondering if it is complicated doing it that way round? One of the houses we’ve viewed needs a lot of work and we would need to release some equity (25%) to do the work...but not until we’ve lived there for a few months, finalised the plans and gone through planning approvals etc.

Any thoughts? Is it better to just get the mortgage sorted during the purchase stage, even if we don’t need the money for 6 months+?

I can't think of a reason why you wouldn't be able to sort out a mortgage after moving in to free up some equity. It might be worth making sure you're eligible and all of that but why pay interest on money you don't need to use for 6 months?!

We did this for different reasons. Was all straightforward although we did use a broker to get the mortgage as that made the process smooth

Can’t see any reason why there would be problems as long as the place is worth what you’ve paid. Survey survey survey!

As it’s 25% it shouldn’t be a problem. We have done this in slightly different circumstances and as long as the house is mortgageable, it’s ok.

Just need to make your surveyor aware you will need a mortgage later and to check house is mortgageable. We bought house in cash at a big discount and surveyor told us we wouldn't be able to get a mortgage on it without certain works being done. We didn't need one but did the work to make it safe and be able to sell.

We bought for cash 18 mths ago & were advised by a mortgage broker that we would not be able to apply for one until having owned the property for 6 complete months first.

It depends how you want to do it - if you think you'll want to do work sooner than 6 months + application time, we applied for a mortgage before moving, but didn't take up the offer until we'd been in for five months (just before it expired). That was fine with the bank (about two years ago).