Sara you do worry me.  You currently have, or appear to have, very little knowledge of the property market, and you probably have not lived long enough to experience property crashes, or at least stagnant growth.  Doing up a property can also cost more that the increase in the value.  With all your lack of experience you appear to have too much confidence that a profit is certain to happy.  Even if you do make a profit, you will have put in a lot of hard work and you may find that for your 'hourly' rate you may have been better off getting another parttime job!

Do take advice.  Any house you do buy make sure it is a house you can live in and do treat it as a 'real' house.  You can still do up your home and should you increase the value of that home, you can then look at selling it and buying your dream home.

 Good luck!

hi. thanks for your comments

At the moment me and my bf are both living at home and wish to buy a house. i want to to a bit of property development in order to fund the house. i want to buy, renovate and sell then either buy my 1st 'real' house or do the same again to make a bit more profit

dont fall into the trap of making money out of simply renovating a house, and FOR THE 1ST TIME. their is alot of HARD CASH and experience required. regardless of whatever mortgage you go for solicitor fees, land searches etc etc all again require HARD CASH. make sure you fully understand what is required for the project and most importantly how you are gunna finance any miscalculated problem should one arise. Do your research before hand.

Firstly - beware!

Buying a house to 'do up' may not necessarily produce a profit.  And any profit you make, unless you are also living in the house, you will have to take out of that the cost of all the loans etc.  Make sure you can afford to take the 'hit' of a loss before going ahead with the venture.

Now to your question.  Yes, bridging loans are more expensive because a) they may not be secured on a property and more risky to the lender, and b) the lender has to make his profit over a shorter period of time as such a loan by its nature should not last long.

So are you looking at owning 2 houses at the same time - I am confused?  Or are you looking at doing up the first house, making a profit, and buying your 'real' house with the, hopefully, profits?

Assuming the latter, then the question makes little sense as should you sell the property, you would have to pay back any mortgage you have secured on that property.  (That is the whole point of a mortgage - if you default, they sell your house to pay off the loan.  When you sell the house, the lender makes you have to clear the loan/mortgage otherwise they would be left lending you money with no way of getting it back should you default.)

Please clarify!

Sara

 Bridging loans are generally more expensive than mortgages.

Me and my boyfriend are looking at buying our first house but we cant afford anything in areas we want.

To fund this i want to buy a cheap property upto £50,000 which needs some renovation (small project maybe just redecorating, new bathroom suite etc)  and sell it asap to make some profit.

 Funding the project and paying a monthly payment for mortgage on £50,000 could be a problem though. I was wondering what people think about bridging loans. Maybe get a small mortgage in conjuction with a bridging loan so i can have a small monthly mortgage repayment and pay off bridging loan when i hopefully get profit from reselling the house or get complete bridging loan???

Any advice would be much appreciated

Thanks sara