Fixer upper advice

fortunefaded

Hi

I'd like to purchase a 60k flat, I need to spend 15k to fix it up and found out the bank won't give me that extra money despite offering me 100k on a mortgage.

What options do I have if i wish to proceed with buying and doing up the flat?

Generali

fortunefaded wrote: »

Hi

I'd like to purchase a 60k flat, I need to spend 15k to fix it up and found out the bank won't give me that extra money despite offering me 100k on a mortgage.

What options do I have if i wish to proceed with buying and doing up the flat?

A mortgage is a secured loan so the bank won't lend a mortgage against the promise of you doing a place up. However, as you do it up, presumably the value will increase so you might find a lender that would be prepared to lend you the money in stage payments, i.e. releasing funds to you as you increase the value of the place.

The alternative would be to borrow the money from another source (presuming you don't have the money available yourself). Once the works are complete and assuming you have managed to add value to the property then you could remortgage and repay that debt you have accrued elsewhere.