Mortgage for a House that needs renovation

[homerjk]

Hi there,

I've searched the forum for an answer on this but most of them are old and the latest one is from a year ago and wasn't really conclusive...

Basically we are looking at buying a house that needs renovation. The house is around 220k and needs about 60k to do up. We have 50k ourselves. We know that we cant get a mortgage for 92% of 280k but we're unsure as how to go about getting the money or if it is even feasible. The house isnt really liveable at the minute so buying it and living in it for a while are also out.

Anecdotal stories tell us that we should just get 92% of 220k and then get a personal loan to make up the difference. Do people actually do this? I've looked up various loan calculators and the longest that most personal loans seem to go is for five years so to get a personal loan of 40k is actually dearer than the mortgage itself!

Do you guys have any suggestions or do suggest we just stick to somewhere that doesnt need to be done up? I would be happy to buy somewhere that doesnt need renovation but there isnt even an overpriced one in the area we want to buy.

Any help is appreciated!!

 

[anthony 1]

hi there,
from my experience in this field you would need to get a proper quote as to how much the renovation costs would be exactly, have this verified by an architect, then get a valuer to put a value on the the potential finished product ( get this on paper) then approach the bank with these details and they should be satisfied one way or another with this, they may ask you for further details but these are the main issues when buying a property in need of work.

regards

 

[homerjk]

Anthony, thanks for that, that is a bit more reassuring at least.

I will look into that with a bank to see if we got all that organized they would give us the mortgage all in one.