Using Credit Card to pay for House Renovation

ChristineMac

HI,
I can just about purchase a house without getting a mortgage. However the house needs around £15,000 of work done to it. The plan is to bring in a builder. What would the best option be to borrow this money. I'll be reducing all my outgoings by moving to this smaller house and am pretty confident that I can repay the above in a year and a half. I'd be grateful for any views/advice on this

grumbler

The best option is to take a small mortgage.
An alternative can be a cheap loan or a 0% or low rate CC that allows 'money transfers'.

• Cheap Loans
• Money Transfer

Buzby

Unless your builder took CC's there is no benefit in doing what you suggest. A small loan even if secured on the property, would be the way to go.

chattychappy

Wouldn't the cost/hassle factor be a little prohibitive on such a relatively small mortgage for such a short time (£15K, 18 months)?

I have 19K unused limit on my MBNA card and just received a money transfer offer, 0% 18 months, 5% fee. I also just had a Barclaycard offer - 3.2% fee, 0% for 12 months for money transfers. 12K unused limit on that.

So, OP, check with your CCs to see if you have any money transfer offers live at the moment. If you are applying for a new one, you are unlikely to get such a high limit straight off. Else I'd go for a personal loan.

ChristineMac

Thanks to all for that. I haven't had a credit card for around 8 years and can't really remember how they work. Did wonder if I could use them for cash. Looks as though a short term loan may be the way to go.

jonesMUFCforever

I think since the new rules came in with mortgages the minimum for most mortgages will be £25k.