MegaSack DRAW - This year's winner is user - rgwb
We will be in touch
Hello all
As you have probably gathered Mrs Eyepic and I are looking to add an extension to our house next summer.
We anticipate that it will cost a lump on money and are told to expect costs of about £40k for the size of extension that we are looking to have…. But to be honest we don’t really know how much it will cost!!
We will have around £15-18K in the piggy bank by then and are looking to spend all/most of it but need to finance the rest… Any ideas how we should go about doing this if we really don’t know how much we actually need to borrow?
All the very best
stick it on the mortgage?
I think that's how most people do it.
Remortgage, assuming you have equity in the house.
As for how much, that depends on where you are in the process. Ideally, you need building warrant quality plans to get an accurate quote.
If I was in your position, I'd be considering a £60k pot to be safe.
Remortgaged here for some work.
Went 50% over too!
We have enough equity in the house to potentially borrow the lot on the mortgage.... I just resent the idea of borrowing too much.
pimping
Boody hell don't want to spent £60k..... mind you don't really want to spend anything ... but do want the extra space.
Mortgage is the cheapest way to borrow any money.
Sort of depends on all sort of stuff? Work out how much shortfall. Say £25000? Do you have a mortgage/loan commitment at the moment? How much (more) can you afford per month on your outgoings? Put that amount into an online loan/mortgage calculator. Unsecured at 8.4% over 10 years is £308 pcm as an example, so adding it to mortgage gets a better rate, but big fees may apply so shop around. Tough bit these days is getting mortgages agreed to, and hefty upfront fees and deposits are an issue.
Also is there any rush, can you just keep saving and build it when you have enough?
Work out how much to get the extension 'sealed', wait until you have that much and do it. Then do the rest as you save/spend the cash.
I looked at the mortgage route but they wouldn't lend at my current rate (0.5%), and the rate they would lend out 'means' we'd be doubling our payments.