refurb mortgage

theGrinch

I am looking at a refurb project. the purchase price is £1.2m, build works £120k and other costs (non finance) £80k. The resale is £1.8m to £1.9m. currently its still in the 1960s and needs a lot of work.

I have been exploring the bridging and dev finance route as ways to finance this. Do you think a BTL mortgage would be another option? I heard there were refurb mortgages available.

Mental_Mentor

Hiya

Am doing similar myself. This looks like a big expensive job though. Hope you've done this before?

Refurbishment mortages are usually offered by banks. I have been offered 70% of purchase price & 70% of refurb costs before. This can be increased to up to 100% if you have enough equity in another property and are prepared to put a second charge on it. They do check your income though to ensure you can make repayments.

These are short term mortgages (up to 1 year) on an interest only basis and they tend to charge more than BTL (around 6-6.5%).

Think you are better off going through a broker for this but can't recommend one as have been told off before

Hope this helps. Good Luck

Mental Mentor