125% Mortgage

louloumac

Hi,i've come across a 3 bed end terrace,needing a little attention for 45k,great price as the properties in this area are being sold for 85k and rising(Merseyside),the problem is i haven't got savings to cover the deposit and fees,so iwas wondering if it would be worth getting a 125%mortgage?The maximum borrowed would be 60k,my income is 29k and i have no debts,i'm renting at the moment 450 p/month.I've heard about renovating mortgages,do they actually exist?Is worth the risk at this price to step into the property ladder?

Fairdo_2

It sounds like 2 different questions here.

Yes there are "renovation" mortgages (or self-build, conversion mortgages). However, you normally need at least a 5% deposit before starting on the staged payments for the renovation.

There are a few lenders that will lend over 100%: Northern Rock (Together), Coventry (Moregage) and Mortgage Express (can't remember off hand what it is called).

However, they are normally a lot tighter on the condition of the property, as they are putting more than the risk of the property value (secured and unsecured)

So you would have to look at what their valuers are likely to say before commiting too far. (Not an easy thing to do!)

meanmachine_2

You have an extremely good wage - well above the national average - and yet you have no savings? Why is that? Best advice is to save the 5% deposit, a tiny tiny sum given your salary and then get a standard mortgage.