Remortgage on today's value, not the price you paid
If you bought below market value, at auction, or added value with works, the price you paid no longer reflects what the property is worth. For years most lenders would only lend on the purchase price until you'd owned it for six months. That's no longer true across the board: lenders on our panel will remortgage within six months on the current valuation.
On value, no works needed
Some lenders on our panel will lend on today's valuation within six months of purchase without any works, for example after a below-market, cash or auction purchase, with an explanation of the uplift.
On value, after works
Many more will lend on the new valuation within six months once improvement works are done and the spend is evidenced: refurbishment, an extension, or conversion to an HMO or flats.
The most cautious lenders still cap the loan at the price paid, or price plus works, until six months have passed. On a property bought well, that can be tens of thousands of pounds less, which is why lender choice matters more than rate here. Every case is subject to the lender's underwriting, and the valuer has to agree the new value.
Buy, add value, refinance on the new value
This is how portfolio landlords recycle capital. Buy below value or a property needing work, often with cash or a short-term loan. Carry out the works. Then remortgage onto a long-term buy-to-let mortgage at 75–80% of the new value, not the old price. The calculator shows how much of your money comes back out. When the value has risen enough, you can recover the whole purchase and works cost.
What lenders need to lend on the new value
- A valuation that supports the uplift. The valuer, not the cost of the works, sets the figure.
- An explanation of the increase: a below-market or auction purchase, a quick sale, or the works done.
- A schedule of works with costs, and invoices or receipts showing the money was spent.
- Before and after photographs.
- Building regulations sign-off, planning or licences where the works needed them (for example an HMO conversion).
- A tenancy in place, or evidence of the achievable rent, so the rent test passes at the bigger loan.
The other "six-month rule"
A second rule catches buyers out: many lenders won't lend on a purchase where the seller has owned the property for less than six months, because quick back-to-back sales have been used for mortgage fraud. Some lenders will consider it with an explanation and a valuation that supports the price. Tell us early if the seller has only just bought.
Frequently asked questions
Can I remortgage on the current value within six months of buying?
Yes. Some lenders on our panel will lend on today's valuation within six months without any works, and many more will once improvement works are done. Every case is subject to underwriting and the valuer agreeing the value.
Why do some lenders only lend on the purchase price?
Quick increases in value have been used for mortgage fraud, so cautious lenders cap the loan at the price paid, or price plus works, until six months have passed. Others will lend on the new value with an explanation and evidence.
What counts as improvement works?
Works that add value: refurbishment, extensions, converting to an HMO or flats, or bringing an unmortgageable property up to standard. Lenders want a schedule of works and evidence of spend.
Can I remortgage on value after buying at auction or below market value?
Often, yes. Some lenders will lend on the current valuation soon after a cash, auction or below-market purchase, with an explanation of why the value is higher than the price.
How much can I raise?
Usually up to 75% or 80% of today's value, less what you owe. The calculator on this page shows the difference between lending on value and on the price you paid.
What is the six-month rule on a purchase?
Many lenders won't lend where the seller has owned the property for under six months. Some will consider it with an explanation and a supporting valuation.