Loan on top of mortgage for renovations

RyanT1992

Hi all! 

If we were to get a mortgage at the top of our salary multiple, but then also wanted to borrow extra to do up the house, what’s the best way of doing that?

Are there lenders that allow you to borrow extra on top of a mortgage, or would it always be a separate loan (probably from a separate company)?

What I’m basically asking, is what the chances are of a first time buyer being able to buy a doer upper & be able to get that work done at the start using a long-term, low interest loan that sits alongside the mortgage and doesn’t kill us financially. Rather than having to wait years to save up to afford it/have enough equity to re-mortgage.

We’re weighing up what sort of property to go for, eg project vs bit of work vs no work

Cheers in advance! 

[Deleted User]

You can borrow up to 95% of the property value on a standard mortgage.

If you have defined rebuild plans and have flexibility in your budget then renovation mortgages exist to release extra funds in stages as the property value increases 

Caz3121

mortgage will be capped at a % of the property value. ...if applicable it may be worth weighing up lower LTV and higher deposit v's higher LTV and lower deposit (keeping some deposit back for work)
whether you will be able to get a loan large enough to do the work at the start will depend on your personal circumstances