Mortgage for renovation

dazed04

I'm hoping someone can put my mind at rest.

Bought a repossession in April 13 -needs £100.000+ on renovation and extension. It will be my new home. I mortgaged my current home (was mortgage free) to buy it and using savings to start renovations. Current home now sold.

Mortgage is with Halifax and advisor is well aware re my need to mortgage new home to complete renovation once my current home sale goes through in July.

I'd initially thought I would be able to 'move' mortgage from one house to the other but she told me that's not possible and I should pay off initial mortgage with the sale. Only then should I apply for a mortgage for renovation of the new home.

Anyway went in to my bank -RBS yesterday thinking I'd get a mortgage quote to compare with Halifax -they said unable to offer a mortgage until I've been owner of the new house for 6 months -something to do with money laundering laws.

Really worried now that I won't get the new mortgage as planned and Halifax didn't get back to me today as promised. Live in Scotland and the two properties are in same town. No credit problems and good income.

Sorry for such a lengthy post!

holly_hobby

Hi there,

Ok, you bought a property with cash, financed from the remortgage of your existing home, and have commenced the renovations with cash.

You have now sold your own home, and intend to make this new refurb property your primary residence.

You also want to remortgage your new home to release funds to fund and complete the refurb.

Re "moving your mortgage" from Halifax - you don't actually transfer the mortgage itself (ie the borrowings), it relates only to the product you are on (ie fixed, discount, etc) - and porting of the product is generally only available on the pch of a new property. Of which they have refused the port.

There are many lenders whom won't permit a remortgage application within 6 mths of ownership, but not all - and a broker is the quickest solutino to tell you whom will permit this.

The 2nd prob you'll, depending upon its current condition, is whether its in a mortgageable condition, or what the current value will be (and any retention), and if that will provide sufficient funds for the scheme - together with your status and income being acceptable of course.

A renovation lender such as Buildstore may fit the bill - and AFAIk lend in bonny Scotland ... so give them a call to discuss your requirements etc ..... again you may have to wait 6 mths before you proceed, but they'll advise accordingly .... http://www.buildstore.co.uk/finance/renovation.html

Hope this helps

Holly

dazed04

Thanks Holly.

I had read on here a bit about buildstore so will have a look on their site. I'll be furious if Halifax advisor has misled me though as she knew exactly what my situation was from the outset. Maybe they will be able to offer something -we'll see.