Can i get extra cash on a mortgage?

sherry69

Hi.
I can buy my council house for £18,800 and it has been valued at £47,000. I have £8000 on credit cards and my question is would i be able to get extra cash to pay of my credit cards and do some home improvements.
So although the house will cost me £18,800 would i be able to get a mortgage for £30,000?
Many thanks.

opinions4u

This depends on the mortgage lender and the local authority.

For any loan over and above the purchase price of £18.8k (and a few hundred quid for solicitors fees) the council have to agreed a deed of postponement (saying that they will let the lender have their money back first if you are repossessed). Most won't allow this for repaying other loans. More likely to say yes if it is for documented home improvements.

Equally, many lenders won't lend for capital raising on a right to buy, although they would consider home improvement funding subject to council consent.

Some of the brokers who post may be able to be more specific in today's market.

An alternative to putting it on the mortgage would be to consolidate your unsecured debts. Only do this if you know you can control future spending on the credit card though!