Financing Home Improvements
08 May 2004, 09:49 PM
#1
Financing Home Improvements
I am after suggestions, situation is, house is adequate but I want to extend it and make it a bit special, main reason is that when we moved in we installed the washer/dryer in the garage along with a downstairs loo as it is a thirties house one loo was considered enough, especially as it was inside !
Anyway, I want my garage back to convert into a cinema so will have to move the washer etc out so was thinking of putting the utility where the existing kitchen is, putting the kitchen in the morning room and then building a decent sized extension to provide a big dining room.
I reckon the work, including putting a brand new kitchen in would cost between 40 and 50k so was wondering how to finance it ?
We have no outstanding debt, nothing to anyone, no mortgage cards or loans, I earn 30k a year but most of it goes just to live, pay bills and run cars ! so we arent exactly cash rich but the house is worth a fair ammount (between 400 and 500 dependant on who you listen too), is there any way of releasing some money now to pay for the alterations without incurring a lot of additional monthly outgoings ?
Anyway, I want my garage back to convert into a cinema so will have to move the washer etc out so was thinking of putting the utility where the existing kitchen is, putting the kitchen in the morning room and then building a decent sized extension to provide a big dining room.
I reckon the work, including putting a brand new kitchen in would cost between 40 and 50k so was wondering how to finance it ?
We have no outstanding debt, nothing to anyone, no mortgage cards or loans, I earn 30k a year but most of it goes just to live, pay bills and run cars ! so we arent exactly cash rich but the house is worth a fair ammount (between 400 and 500 dependant on who you listen too), is there any way of releasing some money now to pay for the alterations without incurring a lot of additional monthly outgoings ?
08 May 2004, 09:52 PM
#2
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Hello
If I read your message correctly, you don't have a mortgage? By far the cheapest way to finance the extension is to take a small mortgage on the property. A £50,000 mortgage will add £300 or so to your monthly outgoings.
If you take a mortgage where you can overpay, then you can pay it off whenever you have cash.
Steve.
If I read your message correctly, you don't have a mortgage? By far the cheapest way to finance the extension is to take a small mortgage on the property. A £50,000 mortgage will add £300 or so to your monthly outgoings.
If you take a mortgage where you can overpay, then you can pay it off whenever you have cash.
Steve.
08 May 2004, 10:30 PM
#3
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Yes, aside from getting four or five 0% interest free credit cards, and juggling them around every 6 months, your best bet to borrow £50k would be to secure it against your property....
Either a 5 or 10 year mortgage secured against your property. Given it is worth £400-500k, lenders will be falling over themselves to lend to you.
Go for a 5 year fixed rate at 5.5% or something, with flexible features if possible (to allow you to settle early if you have extra cash). Easy.
Obviously if you're comfortable, you could go for a non-fixed rate mortgage to ensure a better deal in the short term.
Either a 5 or 10 year mortgage secured against your property. Given it is worth £400-500k, lenders will be falling over themselves to lend to you.
Go for a 5 year fixed rate at 5.5% or something, with flexible features if possible (to allow you to settle early if you have extra cash). Easy.
Obviously if you're comfortable, you could go for a non-fixed rate mortgage to ensure a better deal in the short term.
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