Can You Get a Mortgage for a Renovation Project?
If you have found a property for sale which requires some renovation works can you actually get a mortgage to cover the cost of the purchase of the property and the cost of the required work?
The answer is yes, but it would be a more complicated process that just getting a simple buy to let mortgage. You can get what is called a “Refurbishment Mortgage”.
Refurbishment mortgages are available to cover the cost of property purchase and refurbishment. You will still need some cash though because, like normal buy to let mortgages, the maximum amount you can borrow if 75% of the total amount required.
The interest rate for refurbishment mortgages is also higher than for a normal buy to let mortgage – at the time of writing around 5% seems to be common, but that could be higher depending on the amount of refurbishment and renovation work required.
Refurbishment mortgages are specialist mortgages and more complicated than a normal mortgage. In my opinion, especially if you are looking to carry out your first property renovation, it is far better to follow the strategy outlined in this article.
If you would like more information about this specialist area then search online for more information regarding “refurbishment mortgages”.