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Sorry if this has been asked a million times
cumbrian_blue
Posts: 21 Forumite
We have our house on the market and are close to selling. We have been looking at various properties with a view to purchasing one.
Our question is : There is a house which we like in an amazing area where we would like to live but needs a lot of work and we have been told that the sellers are quite flexible with the price. The house is up for £170000 but after a bit of research and question asking it looks as though they might accept £140000. If we got it for 140000 could we still say to the mortgage company that the purchase price was 170000 meaning we could have 30k to spend on home improvements ? Or would we have to find finance by other means ?
Hope this makes sense. Thanks in advance
Our question is : There is a house which we like in an amazing area where we would like to live but needs a lot of work and we have been told that the sellers are quite flexible with the price. The house is up for £170000 but after a bit of research and question asking it looks as though they might accept £140000. If we got it for 140000 could we still say to the mortgage company that the purchase price was 170000 meaning we could have 30k to spend on home improvements ? Or would we have to find finance by other means ?
Hope this makes sense. Thanks in advance
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Comments
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No, you can't.Slummy mummy!0
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Mortgages are based on the lower of the valuation or purchase price.
You would always have to put in a deposit (bar 1 or 2 family guarantee products) of at least 5%.I am a Mortgage AdviserYou should note that this site doesn't check my status as a mortgage adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.0 -
If you do that then you'll be paying interest on the £30k for as long as you have the mortgage (and your LTV will be lower with the higher purchase price).
Whereas if you bought the house for £140k and took a personal loan for the £30k you could pay this back over 5 years and save yourself money.0 -
cumbrian_blue wrote: »There is a house which we like in an amazing area where we would like to live but needs a lot of work and we have been told that the sellers are quite flexible with the price. The house is up for £170000 but after a bit of research and question asking it looks as though they might accept £140000. If we got it for 140000 could we still say to the mortgage company that the purchase price was 170000 meaning we could have 30k to spend on home improvements ? Or would we have to find finance by other means ?
Hope this makes sense. Thanks in advance
Makes perfect sense, no you cant do this.0 -
Whereas if you bought the house for £140k and took a personal loan for the £30k you could pay this back over 5 years and save yourself money.
OP has a household income of £50K, so they would unlikely secure a £30K unsecured loan.
Looks like they will have to save for home improvments.0
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