Financing a £60k home extension - Help!

hymastar

Hello people, hoping somebody here can help us with raising the capital for a family home extension.
We had considered moving BUT we already have the perfect location - school a couple of streets away, wife's parents around the corner, close to seafront and countryside, house on a corner (easy parking) and a good-size south-facing garden. We also live in an area that has few 4 bedroom houses, therefore good ones get snapped up straight away.
So extension it is!
We estimate we would need £60k to cover all the costs involved and have already looked into a remortgage which would free up £20-25k.
We have no savings due to finally getting married last year, so require a loan (or loans) to make up the rest.
Would a secured loan be out of the question due to having no equity after the remortgage?
Therefore would we need (possibly) two personal loans of around £20k each? I believe these max out at the £25k mark so one alone would leave us short.
ANY help at all would be greatly appreciated!

Gaz83

Some lenders (Sainsbury's I believe) offer unsecured loans of £35k. But getting that will depend on your circumstances. What kind of income do you have?

jonesMUFCforever

Wow £60k loans with no savings - please explain how you will magic up the hundreds of ££ every month on repayments??

Not trying to belittle the OP because we have very little concrete information to go on but to me it is a no hoper.

Good luck - if you want to post a little more information about your finances then perhaps somebody can help you.

[Deleted User]

Is the 60k a builders estimate or your guesstimate? You can build a 2 bedroom house for 60k excluding the cost of the land, which of course you already have.

AnotherJoe

Can't you wait a while and save in the meantime ?

burlington6

We estimate we would need £60k to cover all the costs involved and have already looked into a remortgage which would free up £20-25k.
We have no savings due to finally getting married last year, so require a loan (or loans) to make up the rest.

Reminds me of a question a few weeks back about a couple who wanted to spend a small fortune on their wedding day and the forum asked them if the money could be spent on something better.

Pixie5740

Depending on the size of the extension, number of stories, whether a new kitchen or bathroom will be fitted then £60k might not be far off the mark.

The cheapest way to borrow the money would probably be 2 smaller (£7,500 to £15,000) loans and 0% credit cards to make up the £35k to £20k difference.

You can use the MSE Loan Eligibility Calculator and the MSE Credit Card Eligibility Calculator to gauge your likelihood of being accepted for the credit. The repayments will be high so if you currently have zero savings (I know you got married last year but you still had January and February to save something) then you might not be able to balance your income and expenditure without some serious cutbacks in other areas of your household budget.

Caroline_a

If you've received a quote of £60k from a builder to do the extension, be aware that it will cost a lot more, as you will then need all the extras - light fittings, curtains, flooring, etc etc. It mounts up very quickly!! and if there is a kitchen involved there's also the cost of the units, tiling, lighting, worktops, all of which will add thousands on to your £60k....

ReadingTim

There are a few questions here:

1. whether there's a product or products available which can achieve what you want to achieve;
2. whether you'll be offered them; and
3. whether you can afford them, in addition to existing commitments, eating etc

With the info you've given, we can really only answer point 1; to which I'd suggest that the amount required goes into remortgage / 2nd mortgage (maybe self-build) territory, if that doesn't work, you're probably limited to

• gambling
• armed robbery

Vikipollard

What is the extension to be (bedroom, bathroom?)

Could you convert your loft to achieve the same effect for less and then save over time for an extension when you can afford it?

How much do you save per month? I note you say you have no savings due to a wedding last year, but to be frank, that was at least three months ago! Where is the amount spare to pay the loan?

Clive_Woody

hymastar wrote: »

Hello people, hoping somebody here can help us with raising the capital for a family home extension.
We had considered moving BUT we already have the perfect location - school a couple of streets away, wife's parents around the corner, close to seafront and countryside, house on a corner (easy parking) and a good-size south-facing garden. We also live in an area that has few 4 bedroom houses, therefore good ones get snapped up straight away.
So extension it is!
We estimate we would need £60k to cover all the costs involved and have already looked into a remortgage which would free up £20-25k.
We have no savings due to finally getting married last year, so require a loan (or loans) to make up the rest.
Would a secured loan be out of the question due to having no equity after the remortgage?
Therefore would we need (possibly) two personal loans of around £20k each? I believe these max out at the £25k mark so one alone would leave us short.
ANY help at all would be greatly appreciated!

First point is I don't think you will be able to re-mortgage for the full market value of you house which I presume you mean when you say that there will be no equity left after you did this. Similarly you aren't going to get a secured loan that you takes your debt to full market value of your house.

You and your partner might be able to get unsecured loans but this will depend on what you earn and what other debt you already have.

Could you consider doing the extension in stages?

The facts that you don't mention any savings suggests you don't normally have spare cash each month. A new £60k of dept would require big repayments each month.