Arranging a mortgage higher than the sale price?

pipo

I was wondering whether there are lenders out there who provide mortgages at 'x' amount more than the agreed sale price? That 'x' amount is to then be used for making the property habitable (ie. re-wiring, damp-proofing, GCH installation, new kitchen and bathroom) but not necessarily cover cosmetic stuff like decoration, flooring etc.

If it exists, is there normally a minimum deposit for these type of mortgages?

Thanks in advance.

Sonofa

That would be a 100+% mortgage.

Those are deader than Dodos.

m_13

If you are buying a wreck then you might be able to get a staged renovation mortgage based on the final value not the sale price. Take a look at http://www.homebuilding.co.uk. They do renovation mortgages and this page has details on various products: http://www.homebuilding.co.uk/feature/Beginner039s-Guide-Finance

Running_Horse

When I remortgaged during the good years, I was told in no uncertain terms the valuation was based on the house before improvements. It is unlikely to be easier now.

Robert_Sterling_3

That sounds like a no then.

RetroBob

Er, this is how we got into this damn mess. Do people not learn, really?

If you want money to do the place up, negotiate a reduction in price.

Doozergirl

Someone has already mentioned renovation mortgages. They do exist if the property will be worth more in the long run. People are still allowed to renovate and self-build.

No they won't just give you the cash to buy it and fix it up though. The payments are likely to be staged in arrears so you will need an amount of equity to put towards it and it will be geared therefore to larger scale renovations than just sticking in a new kitchen and a new carpet.

Idiophreak

You could look at getting the work done first, then remortgage/revaule in a year's time or so...

Paulos77

You've got more chance of winning the lottery than getting a mortgage for over 100% of the value now and forever by the looks of things. Its hard enough just to get a mortgage right now. I was lucky to get a 90% one about 5 months ago

pipo

RetroBob wrote: »

Er, this is how we got into this damn mess. Do people not learn, really?

This is the reason why I am asking in the first place as i don't want to just go jumping in with my eyes closed. We fancied the idea of buying somewhere and doing it up ourselves but i thought i'd try and gauge where our financial limits are.

Thanks all.

PD1

RetroBob wrote: »

Er, this is how we got into this damn mess. Do people not learn, really?

If you want money to do the place up, negotiate a reduction in price.

Took the words out of my mouth.....

Mind you, you could have a word with that poor bloke in Scotland who got his £200k merc windows smashed recently, he's got a bit of spare cash knocking about and very little sense.