What Mortgages are available for investors wanting to buy, renovate & sell. And what percentage deposit do you need?

[Guy Banwell]

I currently have one residential mortgage but I would like to purchase another property to renovate and sell for a quick profit.

 

Last year I decided to do some travelling and I am currently working a ski season in Europe. I rented out my house before I went travelling so the repayments are taking care of themselves (and I plan on leaving it that way).

I will be returning to the UK in April and would like to invest in another property, but to buy and sell rather than rent out. I am a general builder by trade so (other than gas and electric) I can do most of the work myself. 

I have around £10,000 cash to spend on a deposit for purchasing the property and then plan to lend/credit card for materials to renovate ( I possibly have a partner willing to also invest £10,000 but nothing confirmed yet) so will be looking to purchase in a cheap area such as Wales or Northern England and maybe a flat, but preferably a small house.

 

So I was wondering what mortgages are available for purchasing a property to renovate, How much deposit % you need and if I can purchase at auction with a mortgage?

 

Thank you so much for any advice!

Guy

[Simon Allen]

Hi Guy

A mortgage is a long-term arrangement and what you are proposing to do is short-term. You have two options, cash or bridging/short-term finance. This type of lender is also used to auction purchases. To use bridging you require a 30% deposit along with funds to cover interest and the lender's setup fee for a 12 month period. This increases the amount that you need to circa 40% of the purchase price.

[Guy Banwell]

Thank's Simon,

 

Can you advise me of any lenders that would be worth contacting regarding this type of auction mortgage / bridging finance.

 

Thanks

Guy

[Abby Foster]

Hi Guy!

 

Please take a look at www.lendswift.co.uk for bridging finance

[Simon Allen]

Hi Guy

I'd rather not recommend any lenders the bridging finance and is nothing to do with the fact that I'm a bridging finance broker. It's not just about rate but service, does the lender have the money, how interest is calculated, how you're treated if repayment is late and there is no way that anybody can find that information out by dealing directly with a lender. I used to run a national bridging company and know the good and the bad within the industry and to identify not just what you're told but also what you are not told!