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getting more money ontop of first time mortgage?

Hello.

Might be a silly question but really want to get an answer... we are now in a position where we almost have the deposit and fees we need for purchasing our first home. We have not been for a mortgage appointment yet but from a lot of research online and advice we would be looking that our max we could get would be about 80k...

My question is, I have seen a lot of houses that are in need of severely updating hence the price being low. For example if the was a house for sale for 50k, can we then get a mortgage for 60k for the renovations or does it not work this way?? Obviously the deposit we would have would be based on the 60 k figure. Or do you have to get a separate loan?

Comments

  • Pixie5740
    Pixie5740 Posts: 14,515 Forumite
    10,000 Posts Eighth Anniversary Name Dropper Photogenic
    No, you can't get a mortgage for more than the property is worth. Those days of 125% LTV mortgages are long gone. The most you'll get is 95% LTV.
  • Mrs_Imp
    Mrs_Imp Posts: 1,001 Forumite
    Have a look at Buildstore's renovation mortgages:
    http://www.buildstore.co.uk/finance/renovation.html
  • AdrianC
    AdrianC Posts: 42,189 Forumite
    Eighth Anniversary 10,000 Posts Name Dropper
    But what you can do is keep part of your savings aside, instead of using them for the purchase.

    Let's say you have £20k deposit. £60k mortgage would give you £80k purchase.
    But £10k deposit plus £70k mortgage will give you £80k purchase plus £10k renovations.
  • blink182_2
    blink182_2 Posts: 11 Forumite
    Thats great thanks for all the help.

    We will just continue to save so that we have extra cash to do work to it.

    many thanks!
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