Questions about a mortgage

JoshBee25

Just a few questions

Say if I had £10,000 deposit the house is £100,000 but also have £13,000 debt could I borrow £103,000 to buy the house and clear debt?

Note this is theoretical as I'm looking to buy in the future but don't have the debt or deposit just curious for my sister

Simon_gloster

No, generally 90% is max borrowing and the lender will take into account your debt when deciding how much they'll lend you.

Those good old days are long gone.

JoshBee25

My dad said the same but wasn't sure.

She then needs the loft converted she has no debt

So she'd need to get a mortgage pay that for a while then take a secure loan against the house fortune lift conversation

Simon_gloster

Umm...sort of!!!


Buy the property....convert the loft..have the mortgage for 6 months then apply.

If she has debt, how iwill she finance the build?

No guarantee either the conversion will add enough to take further lending as 80-85% is the most lenders will go to.

Oh and the little issue of building regs and planning permission otherwise it will be a struggle to have a true value on it.

JoshBee25

She had no debt that was just a theoretical scenario instead of saying about the loft etc... It's a council property she lives in so it won't be expensive to buy but there mortgage will work out cheaper then rent

Simon_gloster

Different kettle of fish.

If its a Right to Buy, then it can be possible to borrow more, for home improvements only and the council will need proof.

The lender will base the ltv on its current value not what she is getting it for.