Please help! First time buyer question

swify1988

I'm a potential first time buyer who has submitted an offer on a repo terraced house. It is going very cheap but it needs around £7,000 in work as it has become quite a mess.

I can get a mortgage for around £60,000 and the house I'm interested in is likely to sell around the £40,000 mark.

Is there any mortgage out there that would allow me to add the extra onto the mortgage in order for me to pay for repairs?

Your advice would be great :beer:

ACG

Nope, if it goes for £40k you would need to put down atleast £4k (10%) as a deposit, possibly more.

kingstreet

If the work is considered essential, there may be a portion of the mortgage money held back until such work is done. This is called a retention.

If a retention is held, you would need to increase your deposit to bridge it until such times as you get the work done. There is normally a six month limit on such repairs. They would then be checked by the valuing surveyor to ensure they are acceptable, before the retention is released.

Buying serious renovation projects is difficult for a cash-limited FTB.

Also, beware of lenders' minimum valuation. Halifax is £40k. Others are higher.