Mortgages for renovations?

Pookle

Does anyone have any suggestions or reccs for a lender who does mortgages for doing up a house? We would want to borrow say £100k but in smaller chunks, say every few months.

Is that possible?

UK007BullDog

If you are buying the property you need to either buy outright or get a mortgage. If you already own the property outright or the mortgage on there is quite small compared to its value then yes you can have a mortgage with a built in reserve or an offset mortgage where you can take money up to the original agreed limit in chunks or as and when you need it. They are run like current accounts where you get a chequebook and a debit card.

It depends on the amount of equity and if the lender will let you borrow more or secure a second charge.

Elaborate on your plans a little so we can see if possible.

Pookle

Okay, basically to cut a long story short.....

We are buying a house from family. We are buying half and being "gifted" half - there will be no need for a mortgage for the purchase. When we got to take out a new mortgage to do the works that need doing, we will have basically £650K equity.

Thanks for your help

UK007BullDog

Then it depends on your income and any outgoings you have and that is the amount you can borrow to fix up the house.

Pookle

Do you know of any specific providers that offer this, or is it something that is common with most lenders?

UK007BullDog

Woolwich, Natwest, Intelligent Finance, RBS, Barclays.....

Most lenders will lend, but you might have to take the whole lot and just put it in a savings account.

UK007BullDog

is the plan to sell or will you move into it to live there yourself. If you look to just sell it maybe a commercial mortgage might be an option as well.