Mortgage question

[homedeeth]

do you think i could go to the bank and ask for a mortgage specifically to buy a house to do up and then flog it?

[Buenchico]

A normal residential mortgage almost certainly wouldn't be appropriate (unless you intended to 'roll over' the funding, upon the sale of the first property, to do up another one). Google 'property development mortgage' to see what's available.

This might help:
http://www.channel4.c...ent-08-05-29_p_1.html

Chris

[Twenty20]

Yes, of course you can go to the bank and ask this. Once you've asked, then you'll know the answer.

Maybe the question you should be asking here is 'Will my bank lend me money to buy a house to renovate and then sell?'. People borrow money all the time to buy property that they then sell, whether its a buy to let or as a development. It will surely depend on your credit rating, whether the property is worth the purchase price and whether the bank think they'll get their money back. If you present a good business case then they may be interested in helping but mortgages aren't so easy to come by these days.

I'd guess, given the question, that you don't have any experience of this which, in the current economic climate, will probably go against you.

[katekoala]

i have done this - and best thing to do is get a mortgage with no penalty / early exit fee. (mine was a buy to let mortgage as a fall back) which was just as well, as 3 years later, still unable to flog it ! and i couldnt even see any money in the market for doing this now - but the mortgage is possible, but interest will be at a higher rate - you will need around 10% deposit (as was 3 years ago, probably more now as no one is lending) and you will need the money for the renovation.

[Captain Spod]

Re ^ Buy To Let mortgages now need 25% deposit. Good luck!