"We're excited to announce this latest criteria enhancement, which gives brokers another way to help their clients"
- Roger Morris - ModaMortgages
Buy-to-let specialist ModaMortgages has expanded its day one remortgage proposition to include landlords who purchased properties using their own funds within the last six months.
The move allows cash buyers to release equity and redeploy it elsewhere, including expanding their portfolios, without waiting through a standard seasoning period.
The lender already accepts day one remortgage applications for bridge exits from FCA-registered firms. Extending the criteria to cash purchases broadens access further, targeting landlords who have bought at auction or acquired previously unmortgageable properties and brought them up to a lettable standard.
Supporting landlords who buy at auction or refurbish to let
The criteria change reflects a growing pattern among portfolio landlords, who increasingly use cash to move quickly at auction or secure properties that would not qualify for a mortgage in their original condition. Once a property has been refurbished and is generating rental income, releasing the equity through a remortgage allows landlords to recycle their capital into further acquisitions.
"We're excited to announce this latest criteria enhancement, which gives brokers another way to help their clients," said Roger Morris, group distribution director at ModaMortgages (pictured). "It supports the growing trend of landlords purchasing properties at auctions with cash, or those who purchased un-mortgageable properties previously and have made them into a lettable state."
"This could involve cosmetic touch-ups like repainting, installing a new kitchen and bathroom, or adding new doors and windows. A little investment can go a long way to increasing the value of a property and can help landlords to exploit the increased equity growth so they can reinvest in other properties and grow their portfolios."
For brokers, the change adds a route to market for clients whose purchase method had previously placed them outside standard remortgage criteria. Auction buyers and refurbishment landlords in particular stand to benefit, given that cash is often the only viable option when acquiring properties requiring work before a lender will consider them.
