Mortgage on our home to renovate another house

Mrmr

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I rang AIB to see if we'd qualify for a mortgage for a renovation project on another house while we live in our home.
Despite the fact that we would renovate over a lng period, and then move in- they would consider it a buy to let mortgage and require 30% deposit.

Are all the lenders like this or would any consider topping up the existing home equity for another property renovation?

Thanks, Mrmr
 
I looked into this with BoI and they made it very clear that equity release could only be considered for renovation on the mortgaged property, and not another.

They would require a lot of proof before during and after.
 
For our PPR mortgage, we switched to KBC and topped up. KBC would allow up to a 20K top-up with no questions asked, i.e. no requirement for quotes for the work. As 3 months passed between AIP and drawdown, we ended up drawing down 24K above what we paid off on our previous mortgage and KBC never batted an eyelid. Ulster Bank were very sticky about quotes to account for every penny of the top-up ... AND they said we could only drawdown the top-up parts by presenting the invoices ....we gave up on Ulster in the end.

OP, if your renovation can be done for ~25K, try topping up your home mortgage with KBC? We also got 3K cashback for switching. Not sure for how much longer this will be available.
 
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I believe the threshold varies from one bank to the other, but above about 50k, they'll all only pay in stages on confirmation the proposed work has been completed. So no option of borrowing on one house to fund renovation of another.
 
It's unclear from the OP whether you need a mortgage to purchase & renovate the 2nd property, or if you already own it and just need funds to complete the renovation?

If they already own the house, the 30% deposit shouldn't be an issue.
 
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