Mortgage Valuation Higher than Purchase Price
Posted on 6 September 2018 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.
Getting a mortgage higher than the purchase price
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.
Which lenders accept this?
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 information 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 call 0344 346 3672 or submit an enquiry and we will arrange a convenient time for one of our consultants to contact you.
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