Financing a loft conversion

mogoli

Hey everyone.

Im interested in doing a loft conversion on my home and I just wanted to get some ideas and things to consider for financing it. Does anyone know what options I have in terms of getting the right loans or remortgaging my home? Ill probably look to borrow around 30k.

Thanks for your thoughts

PeacefulWaters

Make sure you comply with buildings regulations and get any appropriate planning permission.

Remortgage
Further advance on existing mortgage
Secured loan
Unsecured loan
Weird and wonderful juggling of 0% credit cards

mogoli

Many thanks, Ill do some homework on these options as well as planning permission.

foxy-stoat

£30K secured over 10 years @ 4.6% interest is the cheapest on compare the meerkats, assume you wont get that.

£30K unsecured over 10 years @ 8.7% interest is £373 a month total repayment will be £44,743. If you earn over £60,000 a year with no debts, you may get offered this rate.

If you can save £375 a month starting from next payday and do that for 12 months you will only need £25,500 instead of £30,000 - saving you over £2000 in interest on the 8.7% loan....If you can afford to save £1000 a month for a year you would only need a £18,000 loan and you could save another £7000 in interest.

You could speak to your current lender, they should be able to offer you better rates, but do all your homework first.