Tag Archives: Instant Remortgage

Mortgage Express Instant Remortgage – The End

Whilst I was away I was informed that Mortgage Express, one of my favourite mortgage lenders had overnight pulled the plug on their instant remortgage product. Mortgage Express were the only major mortgage company to allow an investor to remortgage their property before owning it for 6 months. An instant remortgage product allows investors to remortgage a property to 85% of its surveyed market value. This is regardless of purchase price.

For example if you purchased a house for 60k and the surveyor agreed that the property is actually worth 100k the bank (mortgage express in this case) would lend you 85k as a remortgage on the day of completion. All you had to do would be to buy with 60k cash then the next day you would be given it back plus an extra 25k.

Of course not everybody has 60k in cash sat in the bank, this created a need for bridging loans companies to lend the cash to purchase the property for 1 day creating easy NMD (no money down) purchases. This market was very competitive with companies charging £500 to lend you up to 200k for one day. These bridging loans companies are not required as there is no decent provider for instant remortgages.

There are of course other companies who will do instant remortgages such as Natwest and The Bank of Ireland, but reports from other investors indicate that they are slow to offer and their rates are completely rubbish. Are there other ways to buy property NMD?