Please bear with me as this is complicated (to me! May seem obvious to others!) but I'd really appreciate your help
DH and I are house hunting. We can get a reasonably high mortgage, but we don't have many savings.
We've just seen a place we like but that needs a lot of work. It's well below budget in terms of mortgage, but would need money spending on it.
If we were to buy it on a 5% mortgage and use the rest of our savings and/or loans to do the work, could we then re-mortgage after 2-3 months based on the value of the renovated house?
So, for example:
House = £180,000
5% deposit = £9,000
Mortgage = £171,000
Spend another £20,000 doing it up
House now worth £200,000 (probably more tbh)
Can we remortgage so that we're still borrowing £170,000 but have 15% equity (and therefore get a better mortgage rate) and release some equity from the house to pay off debts and buy a car?
Thanks
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Funding renovations - 95% mortgage then re-mortgage v.quickly?
8 replies
ATruthUniversallyAcknowledged · 13/02/2014 20:58
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