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Mortgage on a house with history of subsidence?

Hello,   I was wondering if anyone could give me any tips or suggestions on how to get a mortgage on a house that needs major repairs?

I am a first time buyer and i need to be buying with a mortgage in order to get the government bonus from my LISA, if i just get a loan i will loose the bonus...  I do not need a large mortgage, the purchase price is 70k and i have about 60k in savings (including the LISA and bonus) so i only need to borrow ~10K.

I have spoken to a mortgage broker but they said i cannot get a mortgage on a house that does not have a kitchen or bathroom, i left it at that but thinking it over the house does technically have a kitchen and bathroom, its in a mess but it exists.

The vendor has told me that someone had previously tried to get a mortgage on the property but it it got refused due to signs of subsidence, i know the property very well and there has been no movement in the past 6-7 years since the roof was repaired, so i am not overly concerned about buying it, but ive been told this was the reason the mortgage got refused, and that if i want to buy it i would have to be a cash buyer.

I was wondering if it is possibly to still get a £10K mortgage with a large deposit though?  And if there are any specialist lenders or brokers i should try?  

Thanks in advance :)

Comments

  • AdrianC
    AdrianC Posts: 42,189
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    The house is £70k.
    You have £60k, so you "only" need to borrow £10k...

    Except you're going to need to borrow a chunk more than that, aren't you? Because you're going to need to fund those major repairs...

    If they don't need doing, then a survey will identify that, and lenders will be happy to lend.
    If they DO need doing, then a survey will identify that, and lenders won't be happy to lend...
  • Conga
    Conga Posts: 3
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    Newbie
    I will get a loan for materials and do the work myself,    I expect it will take me years to fully renovate it but i am in no rush.
    The house is 100% a renovation job in my view, no one is going to move in and live there at the moment, ive read there are criteria as to if a house is classed as "habitable" by the mortgage company, does it have kitchen bathroom (yes just about), does it have damp (yes) , does it have central heating (no)
    What i am wondering is would it still be possible to go to a specialist lender and borrow £10K?  
  • greatcrested
    greatcrested Posts: 5,925
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    Kitchen and bathroom must be working. ie plumbing works, there's a source of hot water, there'sa cooker of some kind. Does not matter how dated,or indeed derelict so long as it works ie someone could, if they wished, live eat and wash there. More here:
    Have you tried specialise mortgage brokers eg
    You might also need speciaist insurance eg via





  • Conga
    Conga Posts: 3
    First Post
    Newbie
    Thanks for that :)
    Will get in touch with them, 
    Thanks again
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