Are banks giving loans to refurbish a house?

E

emilbronte

Guest
Hi, I'm househunting at the moment and have found a house in the right location but it would need a central heating system and new kitchen bathroom. My savings will cover my deposit and fees but that's it. I can easily cover the mortgage repayments but I won't have any extra to do the refurbishment, are banks lending money for that? I can't see myself living in the house without the work. Any thoughts?
 
I should have said that I can easily cover the mortgage repayments and have enough over to pay back a loan over a few years too, my question is whether the banks are lending for loans for renovations.
 
Would you be able to get some sort of quote for the work to be done and have that amount included with your mortgage.
 
Your best bet would be to know exactly how much the work is going to cost and convince the bank that the value of the property would increase by this amount. They have (very) strict loan to value criteria for mortgages, so you need to demonstrate that this LTV% won't increase above their maximum. In my opinion, you would have difficulty getting a large unsecured personal loan on top of the mortgage but may be able to borrow a smaller amount if you can show clear repayment capacity. Good luck with it
 
+ 1 for what RLd said but also dont forget about your local credit union for a small top up loan (if you have some savings with them). I no the interest rate will be higher than your morgage but it will be over 3-5 years instead of 25-30 years? they may be able to help you out.
 
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