minimum mortgage????

trooperdog

Im looking to purchase a flat but Im struggling to find a mortgage low enough?? the general minimum loan value is 25k but the flat is not worth this im looking to offer 16k with a view to go to 20k. I know nation wide do 6k loans is there anybody else and why is it???

Richard_Webster

Where is this flat you can buy for £16K?

How long is the lease?

Is it ex-Council? What floor is it on?

Is the building of standard construction or some concrete type?

I ask all these points, because whilst it could simply reflect prices in the area, it still sounds very cheap so I am concerned there is something about it that would make it very difficult to sell.

trooperdog

obvious;y im not going to tell you that lol but i can tell you its a reposetion, and its an old victorian house split into three flats its very small but ideal for rental to students in the area! the lease needs to be sorted because as is it stand no one owns the building its upto the other two landlords and hopefully myself to draw up an agreement! or set up a management company, the estate agency doesnt have many details however hopefully my soliciter can retify this!

trooperdog

oh sorry iots on the first floor as well, theres one flat downstairs and two 1 bed flats upstairs

getmore4less

Richard_Webster wrote: »

Where is this flat you can buy for £16K?
.

If you do a full country search on right move there are a few under £20k

Doozergirl

You can get unsecured loans up to that amount. Presumably the cost to the lender of administering a mortgage of less than £25k over the long term isn't worth it to them. Plus, unsecured loans are available and there's not much of a demand for mortgages that small.

With the issues you mention, it's unmortgageable anyway so there's no point in looking!

trooperdog

why is it unmortgageable?
surely once a soliciter has sorted out the ownership issues then it should be a go right?? it seems structurally sound and any work needded is cosmetic! also there is a high chance is was mortgaged once before as its currently owned by a bank who reposessed it, now the only other option is that a different loan was securedx on it??

trooperdog

also i want to avoid a unsecured loan purley for the interest charged!

poppysarah

How much money do you have saved up?

trooperdog

5k puts me at 20% but ive applied for a 85%ltv!

trooperdog

I spoke to a broker and there seems to be quite a few products out there result! fingers crossed!