How to fund a renovation project?

emopink13

Hi

Me and my husband have discovered a renovation project close to our home but I am very confused as to how funding would work.

We are first time buyers so have no current equity and only a small amount of savings (enough to cover a deposit) but no cash to fund the renovation work.
Am I right in thinking we would need to have some source of cash to fund the work to the building or is there a way of getting a mortgage to cover the work and initial purchase costs?

TY

Em

shortchanged_2

Well you would be looking at a 100%+ mortgage which are non existant now.

You would need to find money from elsewhere which the lender would want to know about because if you took loans out etc they would factor this into the affordability criteria.

redlady_1

It depends upon the state of the property as to whether they would give you a mortgage or not. But I am just coming to the end of doing this after 2.5 years and it is not something to be taken lightly. I funded mine with a second job and £7k. By the time I will have finished my guess will be at least £15k will have gone into the cottage.

You are going to have to live in a mess and it wont happen quickly. Would I do it again? Not a chance in hell but it did get me back on the market

Dave_Ham

Only option I could see, and there are many variables:

Get consent to let on your existing property (subject to conditions of lender)

Get 100% mortgage - only one I m aware of on the market would require this to be secured on a family members property (and a few other variables)

Use your savings to fund project....

justjohn

just slum it.... complete the most lived in areas first.

Thrugelmir

emopink13 wrote: »

Hi

Me and my husband have discovered a renovation project close to our home but I am very confused as to how funding would work.

We are first time buyers so have no current equity and only a small amount of savings (enough to cover a deposit) but no cash to fund the renovation work.
Am I right in thinking we would need to have some source of cash to fund the work to the building or is there a way of getting a mortgage to cover the work and initial purchase costs?

TY

Em

Wait until you've built a capital base in the future. If you are serious about undertaking such a project. Get saving hard. As there's no easy credit options.