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First time buyer on a renovation
Splitty93
Posts: 5 Forumite
Hello, I'm currently looking into buying my first home. I have a 10% deposit for a property of around £150000 which should be easily affordable on the payments. I'm looking into doing a renovation project, so buying a house doing it up then possibly around 6 months later selling it on. Can this be done with a mortgage? Lots have big early exit fees, so I assume I'd have to take this into consideration when buying. I understand I'll have to pay stamp duty, solicitor fees etc. Can you get specific mortgages for this? As can't seem to find a lot of information on it? Thanks for your help
0
Comments
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You need developement finance.
Rates are significantly higher than on a residential mortgage - typically around 1% per month (ie 12% p.a). Arrangement fees in the region of 1% + valuation and legal costs.
A residential mortgage is for a property that is habitable and you intend to live in.
Also bare in mind if you do go down this path, you will struggle to sell the property within 6 months due to lenders rules. Also your deposit may be a little on the light side.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 -
Homes under the hammer fan"It is prudent when shopping for something important, not to limit yourself to Pound land/Estate Agents"
G_M/ Bowlhead99 RIP0
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