Costs for stamp duty/renovations

mu0u207b

Hi,

We are selling our house and moving to a bigger house to accommodate our expanding family. We have an AIP for more money than the budget we are looking to spend, however wonder if we could borrow more than the cost of the house so that we could add the stamp duty costs and any costs for renovations on to the mortgage. Is this possible?

TrickyDicky101

It depends on the size of your deposit and what LTV you are intending to borrow.

mu0u207b

our deposit will come from the sale of our existing house, we will have approximately £120,000 in equity from this - does this help? The LTV will be about 65%

amnblog

You can borrow more on a higher loan to value product.

You are not technically borrowing your stamp duty and renovation funds, you are simply putting in less cash and borrowing more.

Thrugelmir

Put less deposit / equity into the new property.

mu0u207b

how does putting less equity in work - do we just get given that bit of money when the sale completes? this is all new to me!

AnotherJoe

Am I missing something here?
The OP has asked if he can borrow more than the cost of the house.
But also talks about a 65% LTV ?

Thrugelmir

mu0u207b wrote: »

how does putting less equity in work - do we just get given that bit of money when the sale completes? this is all new to me!

Existing property value £100k
Mortgage £60k

Equity £40k.


Rather than use the whole equity of £40k. Only use £20k. Borrow an additional £20k on the new mortgage.

This releases £20k as cash to spend as you wish.