Renovation mortgages- Fixer-upper mortgages in the UK
Getting a renovation mortgage is an excellent investment, whether you are a first-time buyer or an experienced investor. A renovation project can bring in a lot of money and take advantage of price reductions when renovations are necessary.
There are a lot of opportunities for a renovation mortgage. The good news is that you can borrow the right amount to pay for the fixer-upper property, the renovation and purchase costs.
We have a few mortgage providers lending a renovation mortgage.
We can find you a better renovation mortgage rate than most high street banks.
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How to obtain a mortgage for a purchase-to-renovate transaction
Multiple mortgage options are available for purchasing a house that needs work. You can borrow the entire amount needed to renovate your home with some of these mortgages.
Before you begin looking for the perfect fixer-upper mortgage, make sure you do some background checks to ensure that lenders will approve.
Lenders may consider a property in such dire need of repairs that it is no longer mortgageable. Your mortgage application could also be affected by the property.
Options for buy-to-renovate mortgages
- The property is in a poor state of repair. It is in very poor condition due to neglect.
- It is not considered habitable, i.e., heating a functional kitchen or bathroom is impossible without electricity.
- Conversion is required for the property.
Speak with a mortgage broker to begin the journey to mortgage approval.
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Even if your property falls into one of these categories, there are exceptions and other financing options that may still be able to get you the mortgage you need. These hidden deals will be available only to specialist mortgage brokers.
We have relationships with mortgage brokers that can help you find the best fixer-upper mortgage provider and provider.
Best mortgages to flip a house
These mortgages can be used to finance your purchase and renovation of your home. To make your house a dream home, the best mortgages are those that consider your property’s value after renovations.
If the post-renovation property’s value is £250,000, and the mortgage program offers a loan at an 80% rate of the property’s renovated value, you can apply for a £200,000 mortgage.
A fixer-upper mortgage is an excellent option if you want a loan for renovations to your property. It allows you to borrow more than a standard mortgage program would allow.
Different types of mortgages are available for properties that are being renovated.
The type of mortgage that is right for you depends on your situation. These factors include your financial history, your credit history and whether you are buying property to occupy or investing in real estate.
Fixer-upper mortgage types include…
- Construction for permanent mortgage
- Construction-only mortgage
- Renovation mortgage
To get the best mortgage to flip a house, talk to an expert by clicking the link below.
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Construction to permanent mortgages
You can borrow money to finance your construction with construction to a permanent mortgage. After construction is completed and you have moved into the property, the lender will convert your loan into a permanent mortgage. This mortgage has a two-part loan. The mortgage is initially an interest-only mortgage that is then drawn down in stages. Once the build is complete, it converts to a regular loan.
Construction-only mortgages
A construction-only mortgage is another option. This allows you to pay for the construction of the property, and when you’re ready to move into it, you can get a second mortgage to repay the construction debt.
These fixer-upper mortgages are a great way to save money and avoid the hassle of applying for another mortgage to renovate your home.
Renovation mortgages
A renovation mortgage allows the borrower to obtain a mortgage equal to the property’s post-renovation value.
Both high street and private banks offer special renovation mortgages to homeowners and businesses throughout the UK. This is also known as a transaction mortgage or a limited cash-out mortgage.
This allows the buyer to finance renovations or repairs. The monthly payments are in addition to your mortgage. A renovation mortgage will enable you to take out a large loan to renovate your home at the same low-interest rate as your mortgage.
Conventional mortgages are available for fixer-upper homes
Conventional loans are mortgages that finance the purchase of a home, but not renovations.
Many mortgage lenders can offer these conventional mortgage products, and they can help you get on the property ladder. This could be the best option if you don’t have to borrow additional money to pay for renovations.
Suppose your finances cannot allow immediate access to a home renovation loan. In that case, you could get a conventional mortgage as a fixer-upper loan and then borrow an additional loan.
Talk to an expert about fixing-upper mortgages.
A mortgage broker specialising in a buy-to-renovate mortgage is the fastest way to get the best deal, whether you are searching for your next home or an investor looking to turn around on their investment quickly.
We will offer you free mortgage advice and have many more lenders than high street banks for a buy-to-renovate mortgage.
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