New Mortgage

jimbo10

Hi I am retired and in my 50s and own my own home worth around 230k. I have finished paying a mortgage on it and have a monthly pension income of £1400. I would like to get a mortgage on another property for renovation worth approx 100k. Ihave enough money for a deposit but would I be able to get a mortgage on my pension alone. If so what would be the best type? I intend to sell the house within 12 months. Any advice would be greatly appreciated

Thrugelmir

Why buy a house to sell again in a short time frame?

If your pension is your only income what are you going to live on?

jimbo10

I think I could make some money on it and it will give me something to do

Jenniefour

jimbo10 wrote: »

I think I could make some money on it and it will give me something to do

You are currently in a good position - no mortgage, decent pension income and savings. You want something interesting to occupy your time.

But I can't imagine why, in the current economic climate and property prices on a downward slide in most areas, you would consider putting all this at risk. A survey has just been published that shows that less than 40% now believe property is a good investment - the writing is on the wall. The days of almost anyone buying a property, doing it up and making a sure fire profit are well and truly over - and most of those who weren't professionals in the trade made the profit from rapidly rising prices - they would have made a profit anyway by doing nothing and selling on after a year or so.

There are probably many ways of finding something interesting to do without the possiblility of adversely affecting your future. You are in an enviable position - enjoy it - and protect it.

getmore4less

Putting aside the is it a good idea or not.

I think you should look at an offset mortgage for the longest term possible for as much as you can on your existing property.

These cost nothing ongoing till used.

This get the funds in place independant of any new purchase/venture that needs cash.

Once sold you offset the fund again but still have them available for any new project.

maninthestreet

getmore4less wrote: »

Putting aside the is it a good idea or not.

I think you should look at an offset mortgage for the longest term possible for as much as you can on your existing property.

These cost nothing ongoing till used.

This get the funds in place independant of any new purchase/venture that needs cash.

Once sold you offset the fund again but still have them available for any new project.

Why risk losing the property you already own outright and live in??

jimbo10

I dont understand what you mean when you say I risk losing my own house if I can make the proposed new mortgage repayments.

Thrugelmir

jimbo10 wrote: »

I dont understand what you mean when you say I risk losing my own house if I can make the proposed new mortgage repayments.

Maybe the project will lose you money?

As there will be purchase costs, sale costs, refurbishment costs and interest costs. Thats before you know what the property will sell for in the market in 12 months time. Thats if it sells quickly and doesn't sit on the market for months..

shortchanged_2

Don't forget jimbo10 house prices are on the way down and that is likely to continue for some time despite what some on here would tell you. The chances of you making a decent profit on house rennovation is not all that great at the moment and you could find yourself worse off.

Thrugelmir

Pali-Mortgages wrote: »

I know of a company that offer bridging loans for about 1% a month. If the house is a real bargain then ignore what people say and go for it!

Only one winner with interest rates that high!