Morgages without fixed rate terms

scottishlad1985

Do you get mortgages without initial fixed rate terms? I say this as I want to buy a house to refurbish it then switch it to a buy to let mortgage with the extra equity that will be added to the property when its finished.

I only want a 10% deposit to go towards the mortgage, and am positive the extra equity will make it 25 % by the time its been refurbished.

dimbo61

Nice idea but that ship has sailed.
It is now so easy for a surveyor to check recent sales !
Now if you buy for £100K and spend money putting in a new kitchen, bathroom and central heating you will not add 25% to the value in 6/12 months.
The last sale on the street is yours !
If you build a large extension either single or two storey you might add 25% but bricks, roof tiles, planning permission is not cheap.
You will have council tax to pay, mortgages payments, gas/electric/water.
Capital gains tax if you sell at a profit and buying and selling costs.
Do not forget the legal costs and stamp duty

scottishlad1985

Hi Gimbo

Thank you for your reply?

Do you think this isn't possible then? I have renovated and sold a property in the past so I know all the costs entailed with this.
I understand where you are coming from with it being the last house sold on the street, you could be right?
The property's valued at 84k and I was thinking I could get it for 75k.... while spending 6/8k. A house identical sold last year for 103k, with these figures in theory it would work to me, if only I could switch the mortgage within 12 months....

Annisele

Are you absolutely certain about your figures?

If you think you could spend £75k plus £8k to get something worth £103k, do you understand the reason why other people aren't snapping the vendor's hand off at an asking price of £84k?

There might well be a very good reason - in which case you could get yourself a bargain. But it's also possible that everybody else is right to value the property at less than £84k.

scottishlad1985

Yes more than certain, The 8 k is material only which would be considerably more if I was paying for labour also! Its only a wee one bed. which has been inherited and they are looking for a fast sale.

kingstreet

Find a product with no early repayment penalties.

Presumably it's nothing to do with the rate, it's your possible need to remortgage within a fairly short timescale.

Remember, some lenders won't accept another mortgage application until you've owned the property for at least six months. This would apply to a buyer if you sold within that period too...