buying a wreck - will i get a mortgage?

redcavewoman

I am coming back to the uk to live with my young family and have seen a smallholding for sale at offers over 210K. I have 200K in the bank but would need to spend about 100K on the house to make it livable. It has a sink and WC but needs everything else replacing.
I have a good income 40k /yr and no other debts so could I ask for a mortgage of 100k, put down 110K and keep 90K to do it up or would the mortgage company expect me to put down more and take out home improvement loans with them?
Advice much appreciated as its been so long since we bought a house!
Many thanks
Tina

m_13

You might be better with a renovation mortgage which will release money in stages. Check out Homebuilding and Renovating magazine in the UK. They have a website and forum here: http://www.homebuilding.co.uk

If you buy a wreck on a normal mortgage they will usually keep back a retention until the basics are there.

RetroBob

Does this make it cheaper I guess?

tyllwyd

I had an idea that it was difficult to get a normal mortgage on a property that didn't have a working kitchen & bathroom, but that's just based on a conversation with a builder so I could be wrong!

Have you factored in the cost of somewhere to stay while you are doing the place up?

Conrad

A standard residential mortgage is only granted if a property is deemed habitable, with working kitchen, bath and heating.
If it is habitable I think it worth trying ordinary lenders but I note youve been abroad so you might not suceed with the many lenders that rely upon credit scoring as the systems need 3 years minimum UK history.

I don't have time to go into all the in's and out's here, but basically I suspect there will be a prime deal out there for you if the place is habitable.

If not, then you might try short term bridging sytle finance until the place is ready to remortgage, but again be certain you will get the new mortgage and not fall at credit score stage (the fact you may have perfect credit is irrelevant in the context of someone not living here 3 years).

So from what you say you would do well to;

1) Seek a lender that does not credit score, where the Human touch still applies

2) Proceed if the place is habitable - lenders aren't interested in ifs and maybes, just the facts as they are today