You may have heard of a day one re-mortgage and figured they sound like a good idea in principal but are struggling to appreciate exactly when someone might need them. The fact of the matter is that these are incredibly popular (albeit difficult to get) forms of re-mortgage that can come in handy for a variety of different reasons. This article will be discussing these reasons amongst other things in a bit more detail.
What Actually is a Day One Re-mortgage?
It is probably worth starting by discussing what a day one re-mortgage is. They are essentially a financial product that allow you to re-mortgage your property very soon after purchasing it. They are different from your standard re-mortgage as you tend to find most organisations won’t let you re-mortgage unless you have owned the property for a few months. Most places tend to have a 6-month rule.
That being said, there is no getting away from the fact that these kinds of re-mortgage are available and are used on a number of different occasions. Businesses such as Drake Mortgages offer a day one remortgage and understand exactly why people might be asking for them. So, what are these different reasons?
The Reasons
Some of the different scenarios when you may well need to get yourself a day one re-mortgage include the following:
- Release Equity: There are a number of instances where people might have to re-mortgage their property because they need to quickly release some of the different equity from it. There are many reasons why someone might need to release equity quickly from their property, for instance, they might want to pay for something they have purchased at auction or pay back money they have borrowed and would like to get the funds together quickly.
- Gift: It may be the case that you have found yourself in the position of being gifted a property as a result of inheritance and would like to raise funds from the property quickly as a means of security. If this is the case, then a day one re-mortgage can be very helpful.
- Home Improvements: It may be that you have just purchased a property and are in the position where you need to do some home improvements quickly to make it more liveable. In these instances, you might want to use a day one re-mortgage to raise the money quickly.
Conclusion
If you have been looking into different kinds of mortgage that are available, then you will more than likely have come across the term day one re-mortgage. If you are unsure as to what this is, it is essentially the ability to re-mortgage your property very quickly after purchasing it. They are difficult to get due to the fact most organisations prefer to wait until you have owned the property for at least 6 months. That being said, there are instances when a day one re-mortgage is necessary, for instance, you might need to release equity quickly, need security after receiving a gift or need money for home improvements shortly after buying.