Need Help

frank3030

Well I`m first time buyer and there is a 1 bedroom house for sale at £30,000 it needs updating just cosmetic work. The problem is I have around 10,000 deposit. But most mortgage company`s have a min lend of 25,000 So how do I purchase it if I can`t get a mortgage for 20,000.

ACG

You can do this with atleast 1 high street lender - subject to it passing a valuation and you passing the lenders criteria. Might be worth a chat with a broker though.

I also suspect you would have to pay a fee as a £20k mortgage would generate about £60 in commission.

kingstreet

Plenty of lenders have a minimum loan of less than £25k.

I would also be careful with minimum property value, as this is below the minimum for a few lenders.

I suggest further research.

Chyna81

Sorry to high jack post but I am a newbie and there seems to be a problem with newbies starting threats.

Hi Everybody,

I am currently a first time buyer looking to purchase a home, I have a deposit ready and waiting, which I have saved myself and have evidence of this.

I had it in mind that I was going to buy a home, which would required very little home improvements, however after searching the housing market there are so many homes at a reasonable price, however they do require additional work i.e new kitchen, bathroom etc, the issue I now have is after putting down the deposit, I will not have enough funds to even start the home improvements.

My question is could I still buy a property and after the completion date, signed paper work, keys in hand, apply for a personal home improvement loan say around 10-15k to complete all the home improvements on the property or would it be to soon after taking out a mortgage.

I do not want to run the risk of ruining my credit rating or being declined because It would be to soon to apply after getting the mortgage. I do not want to go down the equity route.

I would like to hear from anyone who has done this or anyone with advice.

Thanks in advance.

ACG

In theory it can be done yes. You would have to pass the credit and affordability checks but its not impossible to do.

Thrugelmir

Chyna81 wrote: »

I had it in mind that I was going to buy a home, which would required very little home improvements, however after searching the housing market there are so many homes at a reasonable price, however they do require additional work i.e new kitchen, bathroom etc, the issue I now have is after putting down the deposit, I will not have enough funds to even start the home improvements.

Why do they require new kitchens or bathrooms instantly? Wait a while and save some money. Overpaying the mortgage then withdrawing at a later date is one option.

Chyna81

Thrugelmir wrote: »

Why do they require new kitchens or bathrooms instantly? Wait a while and save some money. Overpaying the mortgage then withdrawing at a later date is one option.

The house I am currently looking at would need a new kitchen and bathroom instantly, both are in a terrible state. I will look into that option.

Annisele

If they actually require a new kitchen and bathroom (i.e. the existing ones don't work), then the properties are likely to be unmortgageable.

If you just mean that they're ugly, then your plan is possible - subject to credit/affordability etc.

Chyna81

Annisele wrote: »

If they actually require a new kitchen and bathroom (i.e. the existing ones don't work), then the properties are likely to be unmortgageable.

If you just mean that they're ugly, then your plan is possible - subject to credit/affordability etc.

Both Kitchen and Bathroom are in working order but just not to my standard. Very old and in desperate need of updating. I didn't realise a property could be un mortgageable. Oh wow this is all new to me.

kingstreet

A property with no functioning kitchen and/or bathroom would be considered unmortgageable and a 100% retention held, preventing the purchase from proceeding until the defects were rectified.