Raising money for a repossesion ???

seriphines

Hi were in last stages of purchasing a repossessed home for 150k cash which we have been able to do with the help of cool parents we have put in 50k them 100k. The purchase is complete to the first fix and when done should make us a very tidy house for the money only thing is to get it were maxxed out of cash and need to get a mortgage of 100k in 6months time to pay back the folks + around 10k asap to make the property habitable for us all whats the best cost effective way to do this short term fix-me-up to the new home untill the mortgage comes in 6 months to pay the 10k+100K would it be a loan or a mixture of 0% credit cards ? i dont have a card right now and have a good credit history??:o

DVardysShadow

Why no mortgage??? You do run a few risks with this - if you have not had it surveyed or searches done, some show stopper may creep out of the woodwork which might stop you getting a mortgage.

seriphines

DVardysShadow wrote: »

Why no mortgage??? You do run a few risks with this - if you have not had it surveyed or searches done, some show stopper may creep out of the woodwork which might stop you getting a mortgage.

The estate agents need a buyer to complete within 14 days and a cash sale has been said to be the best method to give the vendor security for this, But your right we may get gazumpped?? My father has some experience and is happy its right and our solicitor has thrown quite a few issue up but we feel we can satisfy them fingers crossed. Im kinda new to credit etc but would like to get the house habitable then re-mortgage to pay it off again but whats the best way for say 10k im thinking a 0% credit card thanks for your reply.dan

DVardysShadow

I never mentioned gazumping. This is a hazard with buying a repo and a quick completion is the best way to avoid this.

But you should not be worried about the vendor's security, you should be worried about your own. As you say, you are new to credit [and mortgages]. From what I read, you have not had a survey done, because it is only the solicitor who is throwing up issues. If you do not have a survey, you run a risk of a defect with the house making it difficult or impossible to mortgage. If that happens, your father's money will be locked in - and you won't even be able to get it back by selling.

In your position, I would be applying for the mortgage now and getting the survey done. As you have the money available from your father, you don't need to wait for the full mortgage process to rumble through - but you will be able to get the mortgage in place fairly quickly after you complete.

Now, for the works you need to do. Are any of them to resolve things which make the house unmortgagable? These you need to fund yourself by whatever credit you choose. But if you get your mortgage within a few weeks after completing the purchase, you don't need to think about other sources of finance, you borrow what is required on the mortgage. If you are not familiar with credit, I doubt you would get a credit card for the full 10,000 - probably less than 5,000 - but you don't know until you ask. And a loan for that amount would have to be secured on the house - but you will also want an early repayment facility. This could be very expensive finance if the interest is frontloaded.

poppysarah

Worrying about being gazumped is no excuse for buying something potentially that could ruin you.

System

If it is not habitable wouldn't you struggle to get a mortgage?

seriphines

Thankyou i do have some worries the property is un-mortgagable as its only complete to the first fix so no kitchen/central heating etc these works will need to be done before a survey is done and a mortgage taken out althought we do have a mortgage in principle for the amount we need on another house so were confident we will be able to get a mortgage as this house when complete will be a much grander home with three extra bedrooms. Someone mentioned its risky not having the full survey done before we purchase but im not to bothered as my dad is an architect and said its been done to a very-good standard, The homebuyers pack said the property did not mention a nhbc certificate and ive checked and it doesnt have any certificates and the council have not been to site much but they have the plans for the planning permission etc...My father can he said help with making the property mortgagable lol as he can give a similar certificate!

poppysarah

No building regs means it needs you to investigate fully the legal consequenes of that - as well as having a full survey done to ensure the work is of sufficient quality for the house not to be falling down.