I am confused with mortagages

ali137

Hi

Person selling the property for £230,000

Will i be able to get a mortgage for £250,000 as i need to do home improvements in the property????

I do not want to take out a extra loan, i want it as part of the mortgage, is that possible????

herbiesjp

You might be able to

It will depend on your income though

Looking at these options i.e. 100%+ mortgages , will limit the number of lenders available

You will find though, that most lenders split the mortgage between secured and unsecured parts anyway - so you will get part of the mortgage amount as a loan

HTH

homer_j_3

there are mortgages that will allow you to do this. They do include an unsecured loan element to it though but is treated as one payment.

whether the amount you need is achievable, it is impossible to say without more details

poppy10_2

It is possible, but the 109% LTV mortgage you'd need will only be available on a very selective basis. And it's a almost always a bad idea - you're in negative equity before you've even started.

Are you going interest only by any chance?

ali137

poppy10 wrote: »

It is possible, but the 109% LTV mortgage you'd need will only be available on a very selective basis. And it's a almost always a bad idea - you're in negative equity before you've even started.

Are you going interest only by any chance?

Yes i am going for interest only.

herbiesjp

That's fine as long as you realise the implications of interest only, or have decided on timescales to change to a repayment mortgage if you want

sikejsudjek

In today's economic climate there is a very good chance of house prices dropping. Interest only mortgages with negative equity are only a good thing if prices are going to rise dramatically. You are taking one hell of a risk. Ever wondered why not too many lenders want to give you money on these terms ? Could it be that they don't think you are going to be able to pay it all back when interest rates rise ?