Mortgage on a house which needs work

Mrstickle

We are just venturing into buying our first home.
We have savings of 30k, so a decent deposit.

We have a certificate from London and Country saying they would give us a mortgage between 140 and 210.

The house we are considering is on the market at 140, however we would want to do some work - a new kitchen and a conservatory, almost as soon as we move in.

The area we wish to buy in does not have many options in the affordability bracket we are comfortable in.

We were advised by L&C we could put a deposit of 21k down so we were not wiping out all our savings, and easily get a mortgage for the 119 to buy the 140k house

My question is, can we increase the amount we borrow, to factor in say 10K to pay for the work. So in effect pay the 21K deposit (we could increase what we put down slightly) and borrow 129 on a house on the market at 140?

I am not sure if this is possible to include money for work in a mortgage, can anyone advise?

bigadaj

Probably not, as your ltv would increase significantly. Your equity would reduce from 15% ish to less than 8% and this would be a big step, it would, certainly increase your rate.

You could try and reduce to a level where you have say a 11% deposit, this would mean putting say 16k in, which would leave you some money, though there would be fees, stamp duty to pay.