Buying a property to improve can be an ideal way to move more quickly up the property ladder, however, the way in which you choose to fund the project can be key to its success.

The amount of cash you have available or that you can borrow will be the major factor in deciding on the most suitable type of finance. As most mortgage lenders will only lend between 85% - 90% of the current value of the property (ie before any improvements are made and assuming it is habitable) a standard mortgage will only work for you if you have enough money to pay the deposit on the property and the cost of improvement.

Often people fund their home improvement costs from personal loans and credit cards and then repay these with a further release of funds from their mortgage lender once the improvements have been completed.

There is an alternative and that is to use a stage payment mortgage for your home improvements. With this type of mortgage, money is released to buy the property, and then in stages during the improvements.

These mortgages are especially useful for major home improvement projects - for example an extension, basement or loft conversion - as many traditional mortgage products and lenders will not lend on a property where major structural works are being carried out.

BuildStore’s unique cost based mortgages can provide guaranteed stage payments based on the cost of works before each stage – giving you certainty in your budget and the funds you need to get the job done! When works are complete, you can switch to one of your lender’s traditional mortgage deals.