Can I borrow more to make home imporvements?

Legacy_user

I'm a first time buyer looking to purchase a home for £150,000 with a £15,000 deposit. This means I will need a mortgage of £135,000 but I've been told I can borrow up to about £165,000. Does this mean that I could borrow my full potential and use the extra £30,000 to spend on much needed work to the property?

Jenniefour

I don't know where you've got your information from, but it's not accurate. This sounds like the old Northern Rock arrangements and no longer exists.

Richey_

No afraid not just means you could potentially but a house up to £180,000 providing you could get accepted for a 5% mortgage.

Best you could look to do is put down a £7,500 deposit and get a 95% mortgage (if you can get one, tough product to get) and then use the other £7,500 for home improvements.

Mortgages for more than the homes worth or even 100% don't exist. They caused the bulk of Northern Rocks woes during the last financial crisis....

Do what the rest of us do, take the mortgage you applied for and just do the dome improvements in stages when you can afford it. If you spent £30,00 would it raise its value by at least that much and does it need £30,000 of work doing? A quarter of its value? If it did I'd be nervous if buying it if that was me

System

It's a small studio, but I'd like to redo the bathroom and kitchen and just general decoration. I just wondered if this was possible but I don't think it would cost so much. I think it will be more fun doing it in stages anyway thanks for your replies!

Jenniefour

lauw0203 wrote: »

It's a small studio, but I'd like to redo the bathroom and kitchen and just general decoration. I just wondered if this was possible but I don't think it would cost so much. I think it will be more fun doing it in stages anyway thanks for your replies!

Just do them as you have the money going along. Lots of info on other boards here on how to get things done with not a lot of money, worth having a look.