Finance options for a project

GreatPretender

Hi

Me and my partner are currently buying a house that is a bit of a project. Mainly because we didnt want a massive mortgage and also because we love the village its in, but would be far too expensive to live in a house already done up.
The house is liveable as it is, and we'll have 600-700 spare per month after bills/living expenses. How ever, due to personal circumstances we've not been able to save up any hude amounts of money for when we move in (we have around 3.5k after deposit + solicitor fees are paid).

Now, as I say, the house is liveable as it is, its just aged and not very efficient. Before we move in, we're having it rewired and a new combi boiler, so that will take the majority of the money we have. Then the next bit will be double glazing throughout, then complete redecoration of every room including kitchen and bathroom.

Due to my partners dad being a builder, we have the luxury of paying 0 in labour (apart from rewiring and boiler obviously)

So, my question is, what are my options finance wise? The mortgage has already been approved, just waiting to sign and exchange contracts, I was thinking my options are:

1) Apply for a loan of around 15k (in the new year, when we'll have had the mortgage for a few months, and I'm also due a pay rise), due to the amount of money spare per month, we could easily pay this back (say, 325 over 60months). But seeing as we'll have just taken on a mortgage - will anyone give us a loan? There will be some equity in the house due to us getting it so cheap compared to what its actually worth (we got it 18k cheaper than valuation, then we paid a 6k deposit), and possibly will be worth more if we get it revalued when we've done the rewire and boiler - so could we get a loan secured against the house?

2) We take a 0% interest credit card - now I'm not sure what credit limit we could get (noway near 15k, maybe 3 or 4? I've not looked into it much), but again, with our monthly incomings we could easily afford to pay it off before the interest free period ends. Although we would want to apply for the credit card before the mortgage is taken on - even though its already been approved, would it affect our mortgage?

3) We live in the house in its current condition and just do it as we have the money - like I say, its liveable but very old, but if the above options arent of any use, then we will happily live there

Any other suggestions will be welcome

Sorry its a little long, thanks for any help

Tom

nubbins

I presume this is your first property?

Option 3. Unless you are flipping this property for a quick profit whats the rush? Most people spend years doing up their property, in fact it never really ends. I would just do what I could myself over the next year and save that 600 quid every month and build up a pot. I certainly would not be spending that amount of left over money on a loan and i certainly would not be racking up credit card debt. I would be taking the partners Daddy out for a pint and cooking him plenty of roast dinners ;o)

GreatPretender

nubbins wrote: »

I presume this is your first property?

Option 3. Unless you are flipping this property for a quick profit whats the rush? Most people spend years doing up their property, in fact it never really ends. I would just do what I could myself over the next year and save that 600 quid every month and build up a pot. I certainly would not be spending that amount of left over money on a loan and i certainly would not be racking up credit card debt. I would be taking the partners Daddy out for a pint and cooking him plenty of roast dinners ;o)

Yes, its our first property

Well, no, we're not in a rush I guess! The 600 wouldnt be building up in a pot unfortunately as theres plenty to do on the house, so as it comes in, we'd spend it! Where as if we got a loan, we'd use that to do the house up then the spare 600 on repaying it... Valid point though, so thanks for the input

dekoder

Could do a combination of 2) and 3).
You can get 0% cards for ~18 months and pay off from savings or balance transfer for another year and a half or more. Would work cheaper than a loan.
http://www.moneysavingexpert.com/credit-cards/best-0-credit-cards
Just don't apply before you complete, it might affect the mortgage.

GreatPretender

dekoder wrote: »

Could do a combination of 2) and 3).
You can get 0% cards for ~18 months and pay off from savings or balance transfer for another year and a half or more. Would work cheaper than a loan.

Just don't apply before you complete, it might affect the mortgage.

Thanks, this is what I was thinking. My concern was about it affecting my mortgage, but as you say, I can wait until my mortgage has gone through

amnblog

Option 3 - do nothing until the purchase is complete

Thrugelmir

GreatPretender wrote: »

3) We live in the house in its current condition and just do it as we have the money - like I say, its liveable but very old, but if the above options arent of any use, then we will happily live there

Best option by far.