To think we WONT get a mortgage? Damp Mouldy house

[CPHB2021]

DH and I have been house viewing for a while. Looking to take on a project ( DH in the trades and all our family/friends are too ) we've seen a house we absolutely love. The end goal is everything we could want but right now.... it's unliveable. We would buy a static caravan and live on site whilst doing the works which the vast majority could be done by DH. My main concern is that we just couldn't get a mortgage on it. It's riddled with mold and damp. We'd need a 90% LTV mortgage to have some money left to buy the static and get started with the works. My heart is IN with this house but reality has kicked in and I'm worried... advice huge appreciated!

You cannot mortgage something uninhabitable.

I think you'll struggle to find a lender for 90% LTV

I can't seem to add any photos but think mouldy ceilings, walls... one ceiling has a leak but we know this is from the flashing and no chimney pot. It's not been lived in for three years so I think lots of the mold is from no heating or ventilation... plus the leak and damp of an old house through two winters.

When I bought my house, I went with the basic survey from the mortgage lender and they did a computer valuation rather than an in person one. I also did my own level 3 survey to understand what issues the house had, but the lender's surveyor never actually set foot in the house, so it can definitely be done.

If it has a working toilet and a working "kitchen" and the outside of the house is mostly weatherproof you should be able to get a mortgage.

We got one with several smashed / boarded up windows, a working loo and a plumbed in sink and drainer in a room with a fridge freezer and a microwave

It also had black mould on several ceilings and walls and missing plaster in places

How long ago was this and what was the LTV? I'm absolutely desperate for this house but also trying to be realistic!

I bought my house at auction with a mortgage. The extension had a flat roof that has collapsed inwards, there was severe damp on one bedroom wall and minor on others. Nationwide agreed Mortgage but retained £10K until I had submitted a damp report and put an RSJ under the bedroom, did not even mention collapsed roof.. Did this while it completed, damp company just said it was because it had not been lived in for 10 years and should be fine once roof had been repaired. Building society were happy and released the full amount.

Ahh I'm so keeping my fingers crossed! I wish I could get photos to upload! What was your LTV ? Thanks for sharing your experience

It was on 2018 and the LTV was probably about 50% we also were actually living in it in that state so could "prove" it was habitable.

You can’t use standard lenders, but you can mortgage most properties.

You may not get a standard mortgage, but could with a specialist lender - someone like build store for example. The rates will not be favourable however and you will struggle with a high ltv.