Mortgage now or later?

[maryanne40]

I am in the happy position of being able to buy the house I want with cash....however the property does require some renovation and I am unsure whether to sort out the loan for that....about 100k....now or wait until the renovation is going ahead.

As I have just sold my own house and am also organising a will, I am dealing with a solicitor right now so it might be cheaper to organise the loan now too. On the other hand I don't want to be making the repayments on 100k when it could be 6 months before we get going on reburbishment.

It is possible isn't it to arrange a mortgage on a house you own outright? (I have the salary to cover 100k no problem at all) Sorry for stupid questions but it is a long time since I have done this and I am unsure.

 

[PM1234]

Lucky you!

It is possible to take a mortgage out on an unencumbered property. Whatever way you decide to proceed (stage payments are available) but bear in mind a loan offer is usually only valid for 6 months.

 

[ATracey]

Proceed now and get Approval for the Loan/Mortgage..

Repayments will not commence until you've drawn down the money.....and on the amount that you draw down...over-estimate your requirements rather than under-estimate them...

You can also arrange a payment holiday if that helps you...give you a break for a few months..

My own view is always look for the umbrella when the sun is shining!

 

[maryanne40]

Thanks both of you for your replies.

Yes, I think I will proceed now.

Do I understand from your posts that it is possible to get approval for what I will eventually need.....about 100,000 in my case....but then only draw that down in stages...? And of course only start paying for it as I draw it down?

 

[ATracey]

MaryAnne...

That would be a fair understanding..

Also, make sure that you are getting best value by shopping around as well as using your own Bank or even using a broker.

Good Luck!