Moving/Home Improvements Mortgage Advice

cheekynick

Hello All, 

We are looking to move to a new home which will involve a small increase in our mortgage.

The new home will require some considerable home improvements - some more urgent than others. These will hopefully be financed by further borrowing.

Would the advice be to just get a bigger mortgage and is this something that lenders generally agree to if we can show it is affordable? 

Also any thoughts if say we were to start the work 6 months after moving in, should we get the extra lending sorted with the move or hold fire until as such time as work starts? 

Thanks      

 

Northern_Wanderer

I believe they will lend you what the home is worth minus your deposit, whatever Loan to Value is on offer. You will have to find other ways to finance the refurbishment outside of the mortage. Have you spoken to a mortgage broker about how much you can borrow? Do you have experience of refurbishments? Can you do the work yourself? Bearing in mind that they usually cost more than you ever imagined.....

housebuyer143

Yes, you just apply for a larger mortgage from the get go if it's affordable. So say that house is worth £400k and your old house £300k. Rather than putting the full £300k into the new house and getting a £100k mortgage, you would get a ££150k mortgage and only put down £250k.