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Borrow for renovation

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  • 02-04-2016 1:35pm
    #1
    Sala
    Registered Users Posts: 1,494 ✭✭✭


    Is it possible to borrow for renovations when getting a mortgage? Looking at a house well below budget that needs work. Only problem is with the deposit we won't have enough for renovation- we have enough to do the main stuff but ideally I'd like a small extension but I'd need more cash for that. Any chance the bank is flexible, or for a fixer upper do you need cash


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    #2
    Gumbo
    Moderators, Society & Culture Moderators Posts: 39,407 Mod ✭✭✭✭Gumbo


    Sala wrote: »
    Is it possible to borrow for renovations when getting a mortgage? Looking at a house well below budget that needs work. Only problem is with the deposit we won't have enough for renovation- we have enough to do the main stuff but ideally I'd like a small extension but I'd need more cash for that. Any chance the bank is flexible, or for a fixer upper do you need cash

    Yes the banks will allow for extra with conditions.
    Some require a before and after valuation to ensure that you still fall within the CB rules.

    You can also get home improvement loans but these are at a higher rate and usually 10 year term is the max, Ulster Bank for example.


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    #3
    Sala
    Registered Users Posts: 1,494 ✭✭✭Sala


    kceire wrote: »
    Yes the banks will allow for extra with conditions.
    Some require a before and after valuation to ensure that you still fall within the CB rules.

    You can also get home improvement loans but these are at a higher rate and usually 10 year term is the max, Ulster Bank for example.


    Thanks a mil. Yeah I saw the home improvement loans they are dear. We would be borrowing 120k less than approved for for the actual house so I was hoping they would thanks that into account

    Edit- sorry how does that work??? Thinking about it- say I buy the
    House and put 100k work in. That increases market value by 70k.... Technically the MV means my deposit requirement is even higher? So I need MORE cash to fall within the rules ?


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    #4
    Gumbo
    Moderators, Society & Culture Moderators Posts: 39,407 Mod ✭✭✭✭Gumbo


    The works you carry out would have to increase the value beyond what you borrow in total.


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    #5
    Zenify
    Registered Users Posts: 861 ✭✭✭Zenify


    Sorry to hijack your thread op but I have a similar question. Does anyone know if you could buy a property with cash - let's say 200k and then get a mortgage of 200k after you've bought it to do it up? would you still need a deposit for the 200k mortgage or is it ok for your deposit to be spent on the original purchase?


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