Can I get a mortgage higher than the house value to cover a refurb?
Posted on 6 September 2013 by Cathy
I am looking to buy a house in the region of £70,000. The house is in need of a tidy up, rewire, etc. I was wondering could you get a mortgage higher than the house price. Would be looking around £110,000. Wanted a fair idea before go asking for a mortgage. Thanks.
This maybe something that can be done, but would come under development finance, which would need to be released in stages as the work progressed. The actual amount you could borrow would be dependent on the end value once all the work has been done.
You are unlikely to get development finance from the main high street lenders, as this type of loan is very specialist. The lenders who look at development loans, will want to know most of the usual infromation from you, such as income, other liabilities, general credit history, and how much money you will be putting into the project, along with a full breakdown of the costs of the refurbishment, and the end value of the property once the work has all been finished.
If you'd like to get a clearer picture of what's involved, then please let me know and I'll arrange a convenient time, for one of our consultants to contact you.
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