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Mortgages to renovate
mrstoute12
Posts: 3 Newbie
Hi I’m new here and would like some advice on moving house from a new build to a much older house that would need plenty of work!!
my current property is valued at £380,000 and my equity in this property is £57,000 having only lived here for 4 years so my question is, would I be able to purchase a house valued at £270,000 and spend £110,000 on it ? Because this also equates to 380,000 all through my mortgage
any advice would be appreciated thanks
any advice would be appreciated thanks
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Comments
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Unlikely. You'll be able to borrow upto 95% of the purchase price only. Lenders don't finance renovation work based on improved value. You'd need to finance the work then hope you can remortgage when it's finished.I am a mortgage broker. 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. Please do not send PMs asking for one-to-one-advice, or representation.0
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You need to borrow 323k (ie. 270k +110k -57k). It would be irresponsible for a lender to give you a loan for 323k secured on a property worth 270k.
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Thank you for the fast responseMark_d said:You need to borrow 323k (ie. 270k +110k -57k). It would be irresponsible for a lender to give you a loan for 323k secured on a property worth 270k.0 -
kingstreet said:Unlikely. You'll be able to borrow upto 95% of the purchase price only. Lenders don't finance renovation work based on improved value. You'd need to finance the work then hope you can remortgage when it's finished.
okay thank you would there be any way of financing something like this such as a bridging loankingstreet said:Unlikely. You'll be able to borrow upto 95% of the purchase price only. Lenders don't finance renovation work based on improved value. You'd need to finance the work then hope you can remortgage when it's finished.
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I have no personal experience of them, but when we were looking into renovation projects, we were looking at Ecology BS as they seemed one of the only lenders that would lend in stages in advance of renovation work rather than after it's done. Might be worth researching if they're an option. Buildstore were another we looked at.0
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Your back! I was beginning to get worried!kingstreet said:Unlikely. You'll be able to borrow upto 95% of the purchase price only. Lenders don't finance renovation work based on improved value. You'd need to finance the work then hope you can remortgage when it's finished.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
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