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Extra mortgage.

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  • 13-09-2015 11:08pm
    #1
    from_atozinc
    Banned (with Prison Access) Posts: 2,943 ✭✭✭


    Let's say I want to buy a house for 300k

    And I have 100k to put towards the house.

    So in theory a 200k mortgage.

    But let's say the house needs 30k worth of renovations done.

    Could I apply for a mortgage of 230k to help me cover the cost of renovations ? Or how do people normally do this ?


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    #2
    Wabbit Ears
    Registered Users Posts: 3,043 ✭✭✭Wabbit Ears


    You Have 70k deposit and a 230k mortgage. You have 30k cash to do it up .

    Doing anything other than just handing over the full mortgage cheque is a PITA.


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    #3
    iainBB
    Registered Users Posts: 460 ✭✭iainBB


    from_atozinc wrote: »
    Let's say I want to buy a house for 300k

    And I have 100k to put towards the house.

    So in theory a 200k mortgage.

    But let's say the house needs 30k worth of renovations done.




    Could I apply for a mortgage of 230k to help me cover the cost of renovations ? Or how do people normally do this ?


    No . they will not let you mortgage repairs and improvements to the property. The 10% or 20% deposit is to cover risk of property prices failing so you take that risk.

    In the bad days of leading they would have done this or furniture etc.
    They only mortgage actually resale item i.e the property.


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    #4
    from_atozinc
    Banned (with Prison Access) Posts: 2,943 ✭✭✭from_atozinc


    Wabbit Ears wrote: »
    You Have 70k deposit and a 230k mortgage. You have 30k cash to do it up .

    Doing anything other than just handing over the full mortgage cheque is a PITA.

    Thanks.

    Would one be as well off to get a separate personal loan for the renovation work ?

    Or just get more of a mortgage and use the cash for renovation ?


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    #5
    johnnyskeleton
    Moderators, Entertainment Moderators, Politics Moderators Posts: 14,507 Mod ✭✭✭✭johnnyskeleton


    from_atozinc wrote: »
    Thanks.

    Would one be as well off to get a separate personal loan for the renovation work ?

    Or just get more of a mortgage and use the cash for renovation ?

    The latter.


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    #6
    Wabbit Ears
    Registered Users Posts: 3,043 ✭✭✭Wabbit Ears


    Personal loans have huge Apr compared to current mortgage Apr. Also 30k renovation is really not 30k. Those estimates are generally "Starting at" values. To be realistic double the money and treble the time.

    My advice for a fixer upper is get a variable mortgage with the minimum deposit of you can get the rest with that amount. Use the cash to do your renovations an set it the way you want it. If there is any left over cash you can dump it back into the mortgage.


    Personally I'd say you are way better off buying a turnkey house with all your money less furniture costs and a smaller mortgage.


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