ModaMortgages Expands Day One Remortgage Deal to Include Recent Cash Purchases: What London Landlords Need to Know

What’s Changed with ModaMortgages’ Day One Remortgage Offer?

ModaMortgages, a well-known FCA-regulated lender specialising in landlord finance, has expanded its day one remortgage deal. Previously, this product targeted properties purchased with a mortgage but now includes properties bought outright with cash in the last six months. This means landlords who completed a cash purchase recently can now immediately remortgage to release equity for further investments.

This is particularly relevant for landlords who have acquired properties at auction, refurbished homes previously deemed unmortgageable, or those executing quick portfolio growth plans using cash.

Why This Matters for London Landlords

In London’s competitive buy-to-let market, capital flexibility is key. Traditional remortgage products often require a six-month seasoning period before a property can be remortgaged. ModaMortgages’ move eliminates this wait, accelerating equity release. For single-unit landlords and portfolio holders alike, this can unlock funds to acquire new assets or improve existing stock, enhancing income potential.

For accidental or small-scale landlords who might have used cash due to mortgage hurdles, this product now offers a route to integrate their properties into a standard mortgage portfolio sooner, improving financing cost-efficiency.

Practical Implications Across Compliance and Operations

Eligibility and Property Standards

Landlords must ensure properties meet ModaMortgages’ lettable standards. These typically cover safety compliance (gas, electrical), habitability, and basic maintenance standards. Properties previously considered unmortgageable due to condition but now improved may qualify, but lettings agents or landlords should request a detailed checklist from ModaMortgages to verify.

Documentation and Timing

Since this deal covers purchases made up to six months prior, accurate records of purchase completion dates, proof of funds, and refurbishment invoices will be essential. Landlords should work closely with their brokers or advisors to assemble these swiftly.

FCA and Regulatory Considerations

ModaMortgages operates under FCA regulations, meaning all applications need to satisfy affordability and suitability assessments. Landlords must ensure their income assessments and credit profiles align with lender expectations.

Tailoring Strategy by Landlord Profile

• Single-unit landlords: This deal can be a game-changer for those who recently bought a property outright, allowing earlier remortgage and capital recycling into other opportunities.
• HMO landlords: Given the potentially higher refurbishment costs and lettable standard requirements, HMOs should be carefully assessed but may benefit if brought up to standard quickly.
• Portfolio landlords: Larger landlords can incorporate recently acquired cash purchases into their financing structures earlier, optimising portfolio gearing and refinancing strategies.
• Accidental landlords: This deal presents an opportunity to transition properties bought with personal funds into mainstream buy-to-let finance faster, smoothing cash flow and tax planning.

Recommended Next Steps for Landlords and Agents

1. Review recent cash purchases: Identify properties bought within the last six months that could qualify for this offer.
2. Assess property condition: Confirm each property meets ModaMortgages’ lettable criteria. Arrange inspections or obtain professional reports if needed.
3. Engage mortgage advisors: Consult trusted brokers experienced with ModaMortgages to evaluate eligibility and streamline application processes.
4. Prepare documentation: Gather proof of purchase, refurbishment works, and income evidence to expedite FCA assessments.
5. Plan portfolio strategy: Consider how early equity release fits your broader investment goals and timing for acquisitions or improvements.

How Rentals & Sales Can Support Your Strategy

Our team offers comprehensive portfolio reviews and compliance audits tailored to such funding developments. We can help you:

• Identify remortgage opportunities among recent cash purchases.
• Coordinate with letting agents and mortgage advisors to verify property compliance.
• Develop pricing strategies reflecting enhanced portfolio leverage.
• Navigate FCA compliance requirements with practical workflows.

Contact us to schedule a consultation and ensure you capitalise on this ModaMortgages development efficiently.

Compliance disclaimer: This article does not constitute financial advice. Landlords should seek personalised advice from FCA-regulated mortgage brokers or financial advisors before undertaking any remortgage application.