If the house costs 100k and I wish to spend 20k on furniture, etc., can I take a mortgage of 120k?

Question

If the price of the house is 100k and I then wish to spend 20k on refurbishment, furniture, etc., do I have to spend the extra 20k out of my pocket or can I get a mortgage of 120k?

Answer 1

u will only get a mortgage for the value of the house. u will have to take a loan out which will be about the same interest as a mortgage. they will go out as one payment to same bank. when u have done the work u cud get it revalued and then remortgagd which would mean u would get your money back if u used ur own.

Answer 2

You cannot borrow extra on a morgage to get furniture for your new home just like that..for example you are paying 100k for a home but the home is actually worth 120k then you can have the home appraised and get a morgage for the full value of the home..The best thing to do is sit down with the owners of the home and the real estate rep ..have them put the price of the house up 20k and then when you purchase the house you have them give you back 20k..it's something people are doing all over the place these days..we did it with our home..the house was listed for 75k and we bought it for 85k and after all was done we got a check for 10k from the people we bought the house from..you have to get some paper work done with signatures so you don't get screwed out of the cash but people in these situations are usually honest and everyone get's what they need in the end.

Answer 3

It depends on:

1) The appraised value of the house.
2) The percent of appraised value the lender will loan you.

If you can afford it you might possibly want to get a first mortgage for $100K and a second mortgage for $20K. Be careful, however. This could trap you into such high monthly payments you would end up losing the house to foreclosure, also resulting in a very poor credit rating

Answer 4

simple answer you can only borrow against the value of the property.so if the property is valued at £100k then you can only get a mortgage based on that and yes the additional £20k would need to be borne by you

Answer 5

you can get a mortgage for whatever you want so long as you have the salary to match - ie, times your salary by 3 which is the safest - try not to go over this. but if you have to you can go x4 and x5. of course any deposit you can put down can be added to that sum - ie, 100k requires £10,000 depsit or 5% 5,000.
times your salary and add the deposit on if that adds to 120k youre ok.
Try not to over stretch yourself, you'll struggle to pay the mortgage and could loose the house so its not worth it.
You'd be better with a couple of bean bags and a mattress on floor until you have money for furniture.

Answer 6

You can only mortgage as much as the property's value.

The only other way round would be not to be your deposit and look for a 100% mortgage (only possible if you have good credit) and then to use what you were going to use as a deposit to do up the house.

Hope this helps x

Answer 7

Hello,

There is one lender that will do this type of mortgage, but would like to express the need for independent finance advice as this is a big step, as you will constantly be in negative equity until you pay a large sum off. I would suggest you look at www.unbiased.co.uk where you will be able to find a financial adviser in your area who will be able to make sure that this is affordable and best advice.

Answer 8

It depends, what was the home appraised at? If the home is worth more than $100k, then yes you can. There is also loans out there that are tailored for home improvements. Your best bet is to talk to your mortgage broker.

Answer 9

no u cant get a mortgage of 120k
u can get the mortgage for 100k because thats the asking price
and the valuation will only be for that amount

Answer 10

yes ur still gonna pay it back at the end of the day a mortgage is just another loan