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Financing a house purchase and renovation

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Financing a house purchase and renovation

2 replies 111 views
Nick22GNick22G Forumite
1 posts
MoneySaving Newbie
Current home owner. Value c£300k, O/s mortgage £80k. 
Want to buy house needing renovation. Cost £320k, renovation costs £120k. 
Problem is, need to raise finance for purchase and renovation and sell current house. 
Bridging loans are expensive and renovation and sale of current hose may take several months. 
Need advice on best options. 
Can I get a £420k mortgage to fund purchase and renovation using both properties as security and then repay a big part of this mortgage after current house sale ? 
Any advice on way fwd appreciated. 

Replies

  • Whats_your_forteWhats_your_forte Forumite
    176 posts
    100 Posts Name Dropper Photogenic
    We'd need an idea of incomes to be able to help on this front ie is there enough to cover two residential mortgages.
    I am a mortgage broker and IFA. You 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
  • foxy-stoatfoxy-stoat Forumite
    6.2K posts
    1,000 Posts Fourth Anniversary Name Dropper
    ✭✭✭✭
    If you had £32,000 cash in bank and met the affordability then you could buy the second property and when you sell the first one you should have £220,000 (less fees) to spend £120,000 and pay £100,000 into the new mortgage you have taken out.

    You wont be able to get another mortgage on the second property using the first property as security.
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