First Mortgage to renovate a flat!

pmathewson

Hi folks, just looking for a bit of advice if anyone can help.

Im looking to buy a 2 bedroom flat in my area thats in need of some work so I can renovate it and sell on for profit.

I am looking at mortgages and there is lots and lots of different kinds. I was wondering if anyone has done anything similar and if so, can you point me in the right direction for the best value mortgage provider.

Obviously im looking for something with the lowest payments possible with no early repayment charge. It also needs to be a 100% mortgage.

Also is it worth taking a interest only mortgage if you are planning on turning around the flat in a month or two.

any help would be greatly appreciated.

cheers

beecher

I don't think there are any 100% mortgages left, apart from for professionals. House prices are going down so the chances of making a profit on renovating a flat are limited - it is very very risky, even if you do have access to funds for a 5-10% mortgage. I think you've missed the boat on this one.

pmathewson

I have heard alot of people say this now. I was told the buy to let market is on it bum aswell from a few friends who used to own several propertys and rent them out. Most of them have sold up now.

I seen the property im interest in for 58k, looking at it definately needs alot of work cosmetically however other similar flats on that street have recently sold for 85k upwards. That is what sparked my interest in putting in an offer for it.

mabey it is too risky

I am living with parents and looking to buy my own house pretty soon but wanted to make some money on a few "Projects" first.

beecher

I think it is far too risky, and you're better saving up a 10% deposit, and waiting it out til prices come down. Who knows, those renovated flats could be going for closer to £58k in a wee while.

charlie_chaplin

why not talk to a mortgage advisor about the mortgage, also you don't have to pay 58k for the flat? you could put in an offer and see what the owners say.
I have a friend who has an estate agents in london, he says the market has slowed but its still moving in london, he also buys doer uppers and has just made £33,500 on a flat in tottenham north london, but then again he doesn't need mortgages, he buys in cash and is loving all the slow down talk as hes picked up a couple of bargains.
just do the sums, be honest about what work needs doing and get quotes, work out what you can do yourself and what you have to pay tradesmen for.

Conrad

If it needs lots of work it is unlikely a lender will lend without holdibng back money pending works completion.

100% is out of the question of course.

sarkin

Flats are a bad invetment now, to many have been built and in some parts of the country are being repoed and sold at auction for 50% less than the purchase price.