Mortgage guidance ...

thomps557

Hi,

I'm looking for a little guidance. I'm a first time buyer. Over the next year, I'm looking to save for a deposit for a home.

I'm looking to buy a run down place and renovate, then sell.

If the property is valued at say £30,000... Can I get a mortgage for £40-50,000 to cover renovation costs?

Do I only qualify for a 'Bridging' mortgage? They sound a little risky.

First direct said they wouldn't loan me the money as I intended to sell after 4-5 months. Is there a contractual time frame on how long I need to have the mortgage before selling? or can i do it any time?

Any info you can give, or anything like that would be great. Thanks.

sparkstertom

I'm not too sure - but I think that would be effectively an LTV of well over 100%?

I'm sure the bods in the know will be along soon...

sparks*

thomps557

........ltv?

Thrugelmir

LTV = Loan to Value

In answer to your initial question the answer is no. No lender will advance you a mortgage in excess of the properties worth. In fact the more equity you can inject the cheaper the rate of interest will be.

In the current market their are 2 sellers for every buyer. So turning over property may not be as easy as you expect.

dimbo61

You need a deposit to buy a property at least 10% unless you are looking at " firstbuy" and the bigger the depsoit the better.
Youb also need the money for the fees, legals, searches, survey ETC
If you want to buy a run down property and do it up you also need the cash to pay for all the repairs !!!!
You cant sell for at least 6 months and then have to pay fees to sell.
The days of buying cheap doing up and selling at a profit are long gone