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Gaining a mortgage on a project house
Ciderarmy1987
Posts: 451 Forumite
Hi
I wasnt really sure where to post this so have posted in the house buyin section as well
We are looking to buy a house with LTV of 85%, at this low deposit amount on a property how much work will a mortgage company be happy for us needing to do when we move in?
Can they sometimes be cautious about lending when there is a lot of work to do, especially as we will need to take out a personal loan to finance so of the work?
Cheers
I wasnt really sure where to post this so have posted in the house buyin section as well
We are looking to buy a house with LTV of 85%, at this low deposit amount on a property how much work will a mortgage company be happy for us needing to do when we move in?
Can they sometimes be cautious about lending when there is a lot of work to do, especially as we will need to take out a personal loan to finance so of the work?
Cheers
Now buying our second house:
Accepted offer 16/12/18. Offer accepted 26/1/19. Buyer pulled out 4/2/19. Accepted new offer 13/2/19
FTB: Offer accepted 23/2/2013 Mortgage application 28/2/2013 Valuation: 4/3/2013 Valuation ok 15/3/2013 Mortgage Offer 21/3/2013 Exchange 10/4/2013 Completion 26/4/2103
Accepted offer 16/12/18. Offer accepted 26/1/19. Buyer pulled out 4/2/19. Accepted new offer 13/2/19
FTB: Offer accepted 23/2/2013 Mortgage application 28/2/2013 Valuation: 4/3/2013 Valuation ok 15/3/2013 Mortgage Offer 21/3/2013 Exchange 10/4/2013 Completion 26/4/2103
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Comments
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It depends on the surveyor who does the valuation. A retention may be held for essential repairs. You would then need to increase your deposit to cover the shortfall.I am a mortgage broker. You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice. Please do not send PMs asking for one-to-one-advice, or representation.0
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kingstreet wrote: »It depends on the surveyor who does the valuation. A retention may be held for essential repairs. You would then need to increase your deposit to cover the shortfall.
I dont think that there is anything that would be essential for somebody to live in the house, but there are things that we would want to do to the house before we lived in it if that makes sense.Now buying our second house:
Accepted offer 16/12/18. Offer accepted 26/1/19. Buyer pulled out 4/2/19. Accepted new offer 13/2/19
FTB: Offer accepted 23/2/2013 Mortgage application 28/2/2013 Valuation: 4/3/2013 Valuation ok 15/3/2013 Mortgage Offer 21/3/2013 Exchange 10/4/2013 Completion 26/4/21030 -
Essential repairs would be issues such as;-
roofing
damp
timber
wall ties
gas
electrics
structure.
These would more than likely be met by a retention to ensure you get them done within six months. You make up the retention to buy the property, then get the work done within six months to get the funds released.
If it has not kitchen or bathroom, it will be considered unmortgageable and a 100% retention taken.I am a mortgage broker. You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice. Please do not send PMs asking for one-to-one-advice, or representation.0 -
kingstreet wrote: »Essential repairs would be issues such as;-
roofing
damp
timber
wall ties
gas
electrics
structure.
These would more than likely be met by a retention to ensure you get them done within six months. You make up the retention to buy the property, then get the work done within six months to get the funds released.
If it has not kitchen or bathroom, it will be considered unmortgageable and a 100% retention taken.
We are going around with builder tomorrow so we should have a better idea after that.
We think that the electrics may need updating, it has a new consumer unit, but old style sockets in the skirting boardsNow buying our second house:
Accepted offer 16/12/18. Offer accepted 26/1/19. Buyer pulled out 4/2/19. Accepted new offer 13/2/19
FTB: Offer accepted 23/2/2013 Mortgage application 28/2/2013 Valuation: 4/3/2013 Valuation ok 15/3/2013 Mortgage Offer 21/3/2013 Exchange 10/4/2013 Completion 26/4/21030
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