Using a Mortgage for Renovations

Dan-Dan

ZanderMJW wrote: »

That's why we're asking tbh, we're new to all of this so not sure if it is or isn't a good idea

It isn't , basics get done first and as suggested , electrics are your next port of call

ZanderMJW

Off topic: We've put an offer on the house through the Estate Agent yesterday however they've just called and said that they're not putting the offer forward to the seller until I go and see someone at their branch to confirm our financial status and basically if we're good for our offer. However this is ringing alarm bells for us for two reasons; the first being that I thought legally they have to put every offer to the seller and the second being that we already have an agreement in principle which does a credit check etc. as well as proof of deposit - So why do they need to do this as well? Any help on this will be much appreciated because I don't want the Estate Agent knowing how much we've got to pay for the house!

Ms_Sophia

redecorating and doing the floors should be the last ones on your list after everything else that needs doing has been done already.

JimmyTheWig

ZanderMJW wrote: »

it may be possible to bring down the asking price due to the work needed meaning the LTV doesn't go up as much when taking out the chunk of the deposit

Note that, while it is worth trying, this won't make much difference to your LTV.
95% mortgage on a purchase of £165k would mean a deposit of £8,250.
95% mortgage on a purchase of, say, £155k would mean a deposit of £7,750.

So knocking £10k off the purchase price will only increase your cash for repairs by £500.


Note that if the purchase price doesn't properly reflect the works that need doing then the valuation may come in significantly lower than you expect. Which would hugely increase your deposit needed.

ZanderMJW

Dan-Dan wrote: »

It isn't , basics get done first and as suggested , electrics are your next port of call

So you're saying that it isn't a good idea to do the CH and instead we should sort out the rest of the house? Or do you mean that you shouldn't do anything else until you've done the CH? (Sorry!)

JimmyTheWig

ZanderMJW wrote: »

Off topic: We've put an offer on the house through the Estate Agent yesterday however they've just called and said that they're not putting the offer forward to the seller until I go and see someone at their branch to confirm our financial status and basically if we're good for our offer. However this is ringing alarm bells for us for two reasons; the first being that I thought legally they have to put every offer to the seller and the second being that we already have an agreement in principle which does a credit check etc. as well as proof of deposit - So why do they need to do this as well? Any help on this will be much appreciated because I don't want the Estate Agent knowing how much we've got to pay for the house!

This comes up on here all the time.
The estate agents have probably offered the vendors a "service" whereby they will kindly "weed out any buyers who aren't in a position to proceed". Many sellers will think that this is a great plan - they wouldn't want to be pestered with offers from buyers who couldn't afford what they were offering. Others, like you, will have seen this as a possible trick to sell their financial services and/or up your offer.
Ultimately it's all a game of bluff from start to finish.
I would speak to them, say that you have an AIP for the mortgage that you would need and the money in the bank for the deposit. You may like to say that you're not willing to go into details now but would consider applying for the mortgage through them once an offer has been accepted. As long as you only say you'll consider it you are still free to do your own thing...

ZanderMJW

JimmyTheWig wrote: »

This comes up on here all the time.
The estate agents have probably offered the vendors a "service" whereby they will kindly "weed out any buyers who aren't in a position to proceed". Many sellers will think that this is a great plan - they wouldn't want to be pestered with offers from buyers who couldn't afford what they were offering. Others, like you, will have seen this as a possible trick to sell their financial services and/or up your offer.
Ultimately it's all a game of bluff from start to finish.
I would speak to them, say that you have an AIP for the mortgage that you would need and the money in the bank for the deposit. You may like to say that you're not willing to go into details now but would consider applying for the mortgage through them once an offer has been accepted. As long as you only say you'll consider it you are still free to do your own thing...

Ah okay - That makes sense to be fair, they'll probably try to sell us their products! With regards to the AIP do you reckon that that's all they'll need to 'weed' me out?

alchemist.1

ZanderMJW wrote: »

Ah okay - That makes sense to be fair, they'll probably try to sell us their products! With regards to the AIP do you reckon that that's all they'll need to 'weed' me out?

Just out of interest, is the EA part of the countrywide group?

ZanderMJW

alchemist.1 wrote: »

Just out of interest, is the EA part of the countrywide group?

Not sure to be honest, just had a look on their website and couldn't see that mentioned (https://www.connells.co.uk/) Why do you ask?

alchemist.1

ZanderMJW wrote: »

Not sure to be honest, just had a look on their website and couldn't see that mentioned (https://www.connells.co.uk/) Why do you ask?

The Countrywide group have a reputation for pushing their brokers/conveyancers via their EA's and the same tactics being used.