Loan to Buy And Renovate A House

Loan To Buy & Renovate A House

We are seeing large demand for people looking to buy and renovate property either to upgrade or to convert usage for investment return purposes.

We can help you if you are:

• Looking to buy an existing property and require funding for the purchase and the renovation costs

• Buying uninhabitable property that is not wind and watertight

• Need to move quickly to secure the property

• Require exit finance e.g. a long term buy to let or HMO mortgage to replace the renovation finance.

Why choose our service?

Fair Mortgages can provide you with a first class mortgage loan service if you are looking to raise finance to renovate a property. 

Special features of what we offer include:

• Loans from £50,000

• Market leading rates

• Finance for purchase

• Loans for renovation costs (up to 100%)

• Fast turnaround - call us if you need to move fast!

• Less than perfect credit history? - We have lenders who will take into account previous defaults and missed payments 

• UK coverage - We have options for property finance across the UK

To investigate your options for raising finance for a renovation project call our specialist team on 0117 403 4474 or fill in our call back form.

How are loans for renovation different?

Loans for renovation differ from standard residential mortgage deals in that they will take into consideration whether the property you want to renovate is currently in a habitable or uninhabitable state.

A habitable property is considered to be one that has a weatherproof roof and walls, plumbing, and other basic features that would allow a person to live in it at the time of purchase.

For these types of renovation properties lenders are more willing to offer high loan to value deals. However they may withhold some funds until essential repairs – for example, minor roofing repairs - are completed.

If the property you want to renovate is currently uninhabitable – for instance, a disused barn or industrial building, or a residential property that is in serious disrepair and needs modernisation – then getting a high loan to value mortgage could prove a little more difficult.

Renovation Loan Case Study:

The Scenario:

The client, a property developer, wanted to purchase a property and sell it on. In order to attract the sort of asking price the client wanted, the property required significant refurbishment work.The client did not have enough finance to fund the purchase and refurbishment.

After approaching unsuccessfully a high street bank for the finance the client came to us for help.

Our Solution:

Through our strong relationship with specialist lenders, we sourced a short-term 12 month loan deal for our client that helped them achieve their goals.We were able to quickly raise £262,000 to contribute towards the purchase of the property. We then secured 100% of the refurbishment costs, which came to £88,000.To minimise the cost for our client, we were able to negotiate with the lender and secure a light refurbishment interest rate.The loan was secured and received swiftly. This allowed our client to finish the purchase and begin the heavy refurbishment of the property without delay.

The client sold the property and repaid the short-term finance with the proceeds of the sale, making a healthy return on investment.

Getting the best loans for renovation

Speak to our specialist team to help you find the right loan finance option for you. 

Call our Mortgage and Loan Team on 0117 403 4474 or request a Callback to discuss your requirements.