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    Borrowing money

    Can anyone help with ideas please? My friend wants to buy a house and renovate it. He wouldn't get a mortgage on it in it's present condition so where could he borrow the mnoeyfrom? He needs £55000 to buy the house and then needs to spend another £30000 roughly. He has about £15000 in savings and earns about £16000 gross working for the county council. Just looking for ideas or a starting point.

    9 Comments

    Be nice to relative who has savings or who mught be able to get a loan against property already owned
    Bank of Mum & Dad

    Banned

    30k to do it up? and it only cost 55k? is it a shell?

    When I was looking at a mortgage, I was advised to go for a buy to let one. Apparently they do no financial checks on you, as long as you can come up with the deposit they need (usually ~20%) you can get the mortgage. These were the words of several independent financial advisers I went to chat to.

    if its essential repairs he should be able to get a mortgage for the full amount...they will then hold the repair money til the work is done.

    Original Poster

    bykergrove;8311216

    30k to do it up? and it only cost 55k? is it a shell?



    It pretty much is a shell - needs rewiring, new boiler and central heating, flat roof extension which needs rebuilding (it forms the kitchen with the only toilet leading off it!) new windows, probably a new damp-proof course, some replacement floorboards, maybe some replastering and much cleaning up, decorating etc. :whistling:

    Original Poster

    nickw90;8311275

    When I was looking at a mortgage, I was advised to go for a buy to let … When I was looking at a mortgage, I was advised to go for a buy to let one. Apparently they do no financial checks on you, as long as you can come up with the deposit they need (usually ~20%) you can get the mortgage. These were the words of several independent financial advisers I went to chat to.



    That looks like a possibility, especially as he would like to rent a room to someone.

    [COLOR="Red"]Go to a loan shark.[/COLOR]

    With an income of only £16k he's extremely unlikely to get anything close to what he wants to borrow. Well, from a reputable lender anyway.
    A few years ago he might have had a chance but not in the current climate.

    i agree with evil-monkey he will need more income at any rate...and buy to let is more expensive APR
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