£45000 cash, looking for a property development mortgage

[th123]

Hi all,

Have a query I’ve been puzzling over and was hoping someone more in the know could help me out.

I am looking to get onto the property ladder in the future.
I am currently a student with no job but I do have £45000 cash and have a £175000 property in my name with no mortgage, where I live.

I wanted to buy a property to renovate and either sell on or let out.

What chances do I have of raising finance for this with no income. Can I use the equity in the property as security with the cash deposit?

Any advice or point in the right direction is much appreciated

[ckf]

Hi th123,

There is a possibility to raise finance as you are in a good position because you have an incumbent property and some capital. Your current property can be used as a security for lending purposes.

The amount of allowed borrowing will be dependent on the required mortgage value, the overall project cost and how you intend to repay the mortgage.

The development mortgage criteria will be measured on the basis of the vaibility of proposed project. Assuming the project makes sense and offers logical exit for the lender, some specialist lenders will consider it, irrespective of your current income situation because this will be viewed as a business venture.


How long have you been exploring the option of property renovation?



Regards

ckf