Mortgage companies for property renovation?

[shot2bits]

Hi All - my wife is about to venture down the road of property renovation. We have one other property (in addition to our house we live in) which is rented to some friends of ours. The mortgage was through Mortgage Express and was pretty much pain free in terms of organising the purchase of the property.

Does anybody have any recommendations as to the best mortgage company to use for renovation - e.g. quick turnaround rather than long term rent? Basically she intends to buy and sell within the shortest possible period depending on the amount of work required.

Thanks in advance...

[KingRichard]

The most important thing to consider are ERC's (Early Repayment Charges)

Most mortgages you would actually want, come with an initial 'honeymoon' period... Discounted, Fixed, capped etc.

It depends wether you would want to buy as a main residence or as a BTL. Some lenders offer mortgages with No ERC at all, where you would only have to pay an admin fee to close the account.

There are other options however. Eg: Yorkshire BS do a 0% mortgage at the moment. It is a stepped rate that goes up and ties you in for a long period. However if you are prepared to pay the ERC it may be worthwhile if you need more money for renovation etc and are prepared to sacrifice a bit of profit.

Don't forget if its not your main residence you will have to pay CGT on any profit you make... however it has been known for couples to seperate, then magically repair their relationship after sale You ain't seen me roight?

[kamal996]

You could look for a development mortgage. These lend at 80% of the current value and then allow you to revalue at the redveloped cost immediately. They just ask that the house be habitable rather than in good condition. You have to therefore find your own money to renovate. They are designed without redemption penalties. There arent many schemes but I found one through Capital Home Loans (via a broker)