Mortgage on property to renovate

isagnew

Hi,

Myself and my partner have just had an offer accepted on a property. The purchase price is £122,500, and we will be getting a mortgage for £116,375 (95%).

The property is in need of modernising and so I wondered how I go about borrowing the money for this..?? Will I need to increase the mortgage so that it goes over 95% or do i need to get a home improvement loan etc etc..and if so - can someone explain/direct me to an explanation on how they work???

many thanks

Iain

epz_2

isagnew wrote: »

Hi,

Myself and my partner have just had an offer accepted on a property. The purchase price is £122,500, and we will be getting a mortgage for £116,375 (95%).

The property is in need of modernising and so I wondered how I go about borrowing the money for this..?? Will I need to increase the mortgage so that it goes over 95% or do i need to get a home improvement loan etc etc..and if so - can someone explain/direct me to an explanation on how they work???

many thanks

Iain

how much work we talking about, is it just a case of repapering the walls and generaly tidiying the place up or we talking about rewiring, moving walls or major plumming.

if its the former i would be tempted to either deal with it and pay for the repairs gradually out of monthly pay or a very short term loan, the latter and you may want to check with the bank if you can remorgage for a larger ammount after the improvements and a timescale they would take to do so. if its under 2 months you could bung the work on a credit card and get it interest free.