Mortgage plus an additional loan?

topherknowles

Can anyone help ease my confusion?

We are looking to buy a property for about £130k that requires around £10k worth of work before it's comfortable to live in.

We have a deposit of around £15k plus about £5k from the sale of our current property (which is sold subject to contract).

Some of this will go on fees and stamp duty etc so we expect to have a couple of grand left over which won't be enough to cover the required work.

Is it still possible to buy this property and what is the best way to go about getting the additional funds... a loan? Credit card?

Any help would be appreciated, I'm not sure what conversations we need to be having with the banks!

marathonic

I've heard stories that banks can do additional credit checks right up to completion so you could be approved for a mortgage, apply for a loan and then have the mortgage offer withdrawn when the bank see further credit checks on your credit report.

For this reason, I'd wait until completion, then apply for the loan. There's the risk that you'll not get approved to deal with.

maninthestreet

Any further credit you take out will affect your ability to service your mortgage on the new property. Has the survey been carried out on that property yet?