Need additional funds for renovation - Can I add to mortgage?

I

IggyStooge

Guest
We are two FTBs and have mortgage approval for 500k with a 50k deposit, no other savings. Viewed a second hand house today (approx. 500k) that fits the bill but would need approx. 50K to modernise etc.

Would a bank consider providing me with extra 50k on top of mortgage? How would these extra funds be categorised/assessed?
 
The lending institution probably has a mortgage limit of 90 or 92% of the purchase price so this will be the max you can borrow as a mortgage.

If you wish to ask them to give you a loan of 50K on top of this, as a standard loan, it will depend on your ability to repay.

Given that house prices are falling, not rising at the moment, I would say a top-up mortgage will not be possible in the short term.
 
If you qualify by their criteria, Bank of Scotland still offer 100% mortgages so you could borrow €500,000 to buy and then use your savings to renovate.

Obviously, you'll need to think long and hard before taking on a 100% mortgage in today's housing market.

Liam D. Ferguson
www.ferga.com
 
Many thanks for your responses. I shall assess both options.
 
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