I am about to buy first house in UK, mainly for investment purposes (UK)

Property price: up to 280k £ Spare cash: 60k (deposit, fees, renovation costs)

(renovation costs will be much lowers, because I used to own renovation business, thus got workforce to do it at much better price + equipment + possibly materials at lower price) I would live in this house during renovation (I am aware that kitchen and bathroom needs to be in usable state to get a mortgage to live in)

Now my question is, if I take a mortgage, increase value of the property, by say 20k, and if I decide to sell it early, say after one year, what sort of negative consequences can I expect, fines from the bank? Is it financially price effective? Thank you.

1 Answer 1


There’s no standard for early redemption penalties. Some mortgages have them and some don’t — read the small print of any mortgage you are thinking about applying for. But in general, avoid fixed-rate mortgages and go for floating rates, which are much less likely to have redemption penalties.

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