Whether you\u2019re a<a href="https:\/\/www.onlinemortgageadvisor.co.uk\/first-time-buyer-mortgages\/"> first-time buyer<\/a> or an experienced investor, getting a fixer-upper property can be a lucrative investment. There is money to be made from flipping properties and taking advantage of price reductions where renovations are required.\r\n\r\nThe opportunity is certainly there, and the good news is that there are mortgage programmes specially designed to help you borrow the right amount for both purchase and renovation costs, as we explain in detail in this guide to buy to renovate mortgages.\r\n\r\nThe following topics are covered below...\r\n<ul>\r\n \t<li><a href="#how-to">How to get a buy-to-renovate mortgage<\/a><\/li>\r\n \t<li><a href="#best">Best mortgages for flipping a house<\/li>\r\n \t<li><a href="#types">Types of mortgages for buy-to-renovate properties<\/li>\r\n \t<li><a href="#conventional">Conventional mortgages for fixer-upper properties<\/li>\r\n \t<li><A href="#expert">Speak to an expert<\/li>\r\n<\/ul>\r\n[feefo-banner]\r\n<h2 id="how-to">How to get a buy-to-renovate mortgage<\/h2>\r\nThere are multiple mortgage options for buying a house that needs work. Some of these products even allow you to take out the full sum of the cash needed for renovations. But before you start looking for your best fixer-upper mortgage, you\u2019ll need to do a few checks on the property to ensure lenders would approve it for a mortgage.\r\n\r\nThere are some situations in which lenders would consider a property so far in need of repairs that it becomes unmortgageable. The<a href="https:\/\/www.onlinemortgageadvisor.co.uk\/property-types\/"> property type<\/a> may also affect your<a href="https:\/\/www.onlinemortgageadvisor.co.uk\/mortgage-application\/"> mortgage application<\/a>.\r\n<h3>Buy-to-renovate mortgage options<\/h3>\r\nMost high street banks and mortgage lenders won\u2019t give you a mortgage if\u2026\r\n<ul>\r\n \t<li>The property is derelict, i.e. in a very poor condition from neglect.<\/li>\r\n \t<li>Not considered to be \u2018habitable\u2019, i.e. lacking electricity, heating a functioning kitchen and bathroom.<\/li>\r\n \t<li>The property needs conversion.<\/li>\r\n<\/ul>\r\nHowever, even if the property does fall into one of these categories, there are some exceptions and alternative financing options that could still get you the mortgage you need. Specialist mortgage brokers will know where to find these hidden deals.\r\n\r\nWe work with mortgage brokers who can take you to your most suitable fixer-upper mortgage and provider.\r\n<h2 id="best">Best mortgages for flipping a house<\/h2>\r\nFixer-upper mortgages are designed to give you all the finances you need to buy and renovate your property. The best mortgages for flipping a house into your ideal home use the post-renovation property value to determine the size of the mortgage you qualify for.\r\n\r\nFor example, if the post-renovation property value is \u00a3250,000 and the mortgage programme offers a loan based on an 80% ratio of the renovated value of the property, you can take out a<a href="https:\/\/www.onlinemortgageadvisor.co.uk\/mortgage-repayments\/200000-mortgages\/"> \u00a3200,000 mortgage<\/a>.\r\n\r\nIf you need to get a loan to complete renovation of the property, a fixer-upper mortgage could be right for you, enabling more borrowing than the guidelines for a standard mortgage programme would allow.\r\n<h2 id="types">Types of mortgages for buy-to-renovate properties<\/h2>\r\nThe<a href="https:\/\/www.onlinemortgageadvisor.co.uk\/mortgage-application\/complete-guide-to-mortgages\/"> type of mortgage<\/a> that\u2019s a match for you will depend on situation-specific factors such as the property itself, your finances, your<a href="https:\/\/www.onlinemortgageadvisor.co.uk\/your-credit-score\/"> credit history<\/a>, whether you are a real estate investor or purchasing property to occupy, and how much renovation is needed.\r\n\r\nFixer-upper mortgage types include...\r\n<ul>\r\n \t<li>Construction to permanent mortgage<\/li>\r\n \t<li><a href="https:\/\/www.onlinemortgageadvisor.co.uk\/self-build\/">Construction-only mortgage<\/a><\/li>\r\n \t<li>Renovation mortgage<\/li>\r\n<\/ul>\r\nIf you\u2019d like help getting the best mortgage for flipping a house hassle-free, speak to an expert.<a href="https:\/\/enquiries.onlinemortgageadvisor.co.uk\/property-types-advice\/"> Make an enquiry<\/a> and we\u2019ll put you in touch with a specialist fixer-upper mortgage broker.\r\n<h3>Construction to permanent mortgages<\/h3>\r\nA construction to permanent mortgage allows you to borrow funds to pay for your construction. Once construction is complete and you move into the property, the lender will convert the loan into a permanent mortgage. This is a mortgage with a two-part loan. It starts out as an<a href="https:\/\/www.onlinemortgageadvisor.co.uk\/interest-only-mortgages\/"> interest-only mortgage<\/a> drawn down in stages which then converts to a regular mortgage when the build is finished.\r\n<h3>Construction-only mortgages<\/h3>\r\nAn alternative is taking out a<a href="https:\/\/www.onlinemortgageadvisor.co.uk\/development-finance\/"> construction-only mortgage<\/a>. It enables you to pay for construction and when you\u2019re ready to move into the property, you are given a second mortgage in which you pay back the construction debt.\r\n\r\nThe advantage of getting these types of fixer-upper mortgages is that you can save money with a two-in-one deal and remove the extra hassle of applying for a second mortgage to renovate your property.\r\n<h3>Renovation mortgages<\/h3>\r\nA renovation mortgage enables the borrower to take out a mortgage size equivalent to the post-renovation property value.\r\n\r\nThere are providers from both high street and private banks which offer specialist renovation mortgages for both residential and<a href="https:\/\/www.onlinemortgageadvisor.co.uk\/commercial-mortgages\/"> commercial properties<\/a> in the UK. It\u2019s known as limited cash-out refinance mortgage or a transaction mortgage.\r\n\r\nThis gives the buyer funds to cover repair and remodelling or renovation costs, or \u2018sweat equity.\u2019 The extra finances you take out for renovations are paid off in monthly payments alongside your mortgage. The advantage a renovation mortgage offers is that you can take out a loan big enough to renovate your property at the same low-interest rate of your property\u2019s mortgage.\r\n<h2 id="conventional">Conventional mortgages for fixer-upper properties<\/h2>\r\nA conventional loan is a mortgage which will finance the purchase of an owner-occupied home but won\u2019t cover the cost of renovations.\r\n\r\nMany mortgage lenders will offer these conventional mortgage products, which can help you get your foot on the property ladder. If you don\u2019t need to take out an additional loan to cover the cost of renovations, this could be the right option for you.\r\n\r\nYou could also get a conventional mortgage for a fixer-upper and then take out an additional loan for renovations at a later date if your finances restrict getting immediate access to an additional home renovation loan.\r\n<h2 id="expert">Speak to an expert about fixer-upper mortgages<\/h2>\r\nWhether you are looking for your next home to purchase and repair, or you\u2019re an investor looking for a quick turnaround on investment, speaking to a mortgage broker who specialises in fixer-upper property finance is a fast-track option to getting the best deal.\r\n\r\nWe offer a free broker-matching service that will assess your needs and circumstances to pair you up with the mortgage advisor who\u2019s best positioned to help you. In this case, you\u2019ll be matched with an expert on fixer-upper mortgages who we\u2019ve personally vetted to ensure they have the right knowledge and expert to get results for customers just like you.\r\n\r\nCall us on 0808 189 2301 or<a href="https:\/\/enquiries.onlinemortgageadvisor.co.uk\/property-types-advice\/"> make an enquiry<\/a> so we can introduce you to the ideal expert for you, for free. There\u2019s no obligation and your credit report will not be affected.