Stretching Mortgage

B

BuilderBob

Registered User
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Hello there,

Anybody know if it's possible to flesh out the mortgage application in order to cover an extra amount for doing up a house.
Will banks lend extra for such an event.
Am already pre-approved for more than house value but would like an extra 25/30K to get house up to date.
Cheers
 
Re: Stretching Mortage

No, you can only borrow 100% of the purchase price/valuation up front (assuming you qualify) but if you have a schedule of works you intend doing to the property you should give this - with estimates - to the lender's valuer. He/she can then value the property on a "when finished" basis and the lender should be able to approve a further sum you can draw once the works have been completed and the house re-valued. This assumes that the cost of the work will increase the house value by an equal or greater sum - not always the case.

Sarah

www.rea.ie
 
Re: Stretching Mortage

Thanks Sarah

Is there no way (unscrupulous or otherwise) to get a higher valuation??

What about being honest and saying that we want to do X and we are intending to borrow a good deal less than our limit?

It's going to be difficult to stretch cash to cover stamp, deposit AND upgrade to house.

Any/all suggestions welcome
 
Re: Stretching Mortage

Why not apply for 100% and use your deposit money to do up the house? Also you shouldn't be paying for work upfront so if you were to agree additional funds they could be drawn as soon as the work is finished. What work needs to be done?

Sarah

www.rea.ie
 
Re: Stretching Mortage

Thanks again Sarah.

I thought you had to be a 1st time buyer to get 100%.

Of course won't be paying for work before it's done. But would just need to know that it was available. It wouldn't be structural work and would not want to have to pay somebody to certify that certain work had been done in order to get funds from the bank.
 
Yes, one of you has to be a FTB to get 100% and you must both have a minimum of one years employment history. And I'm afraid you would have to pay for a revaluation (c€100) to get the funds released. Could you possibly do the work as you can afford it or is it essential? (NB new kitchens and bathrooms aren't essential just because you don't like the colours :) )

Sarah

www.rea.ie
 
Dammit :(

Was half-hoping you would have some brilliant new idea on how to get 100% for non 1st time buyers.

As for the work needed the house has been empty for a couple of years so the works would be needed.

How do people who are buying property manage to get extra monies for cars etc??
They aren't all be releasing equity in existing properties. So many you hear of are buying 2nd properties.

But thanks so much for your help
 
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