Loan for extension

Technoholic

Hi all

Need a bit of advice on borrowing for an extension.

We're soon to sign the contracts on an extension provided we can get our finances sorted out. The extension including all associated costs and furnishings and contingency is going to be £112000. We currently have 84000 in the bank and need to finance the rest.

Maybe stupidly, we remortgaged at the beginning of the year in order to lock in a good fixed rate but we didn't think we would be able to get the extension planned so soon, and didn't consider borrowing the extra we would need at the time. Our mortgage is with nationwide and they won't give us an advance until 6 months after completion, by which the extension will be in theory nearly completed.

What is the best way to finance the shortfall of £28k? I've never looked at home improvement loans or secured loans so don't know if they are actually viable solutions or not?

Any advice appreciated.

Thanks

[Deleted User]

Not enough info to say.

What's your income? What other debts and commitments do you have? What are your credit files like?

28k is at the top end of unsecured loans.

[Deleted User]

Could you not hold back on the work while you save some more cash?

Technoholic

No other commitments apart from mortgage which is 270000 with monthly payment of 1217. joint income is 110k. Credit file is as good as could be.

enthusiasticsaver

I would do a combination of cutting back , saving as much as possible in next 6 months and if necessary a 0% money transfer card. Presumably you do not need to pay the whole amount up front and you have 75% of the money available. Often builders over run anyway.

Technoholic

That's certainly an option but with respect I didn't ask for what I should consider in alternative to borrowing, I was asking for information about those types of borrowing I mentioned. I'm considering my options and the borrowing option when it comes to secured loans and which providers are recommended etc are what I need to know.

I don't mean to be rude but I don't understand why people answer a question with their own opinion assuming I haven't considered my options otherwise.

And Venison, no we can't wait for a number of reasons that I don't want to go into here, suffice to say if we're going to go ahead we have a start date of end of April.

And with regards overrunning, that's certainly true but our contract is written that we have clawback on the money if they overrun. Although they may overrun I can't rely on that happening in order to have extra time to save up.

meer53

See post #2, you asked for ANY advice but without answers it's impossible.

Technoholic

I answered those questions in post 4. And I was asking for any advice on the loans. But fair point I can see how that might have been ambiguous.

DCFC79

Technoholic wrote: »

I don't mean to be rude but I don't understand why people answer a question with their own opinion assuming I haven't considered my options otherwise.

Because we aren't mind readers on here, you could have stated what options you had explored.

Technoholic

Granted I could have made it more clear that the advice I was asking for was specifically about secured loans but reading it back it still feels implied, and therefore didn't need advice on other options at all,even if it was felt that there were other options to consider. Anyway it doesn't need a long argument over semantics, if anyone can help me understand more about secured loans and any providers to avoid or anything along those line I'd be grateful. I think I've provided all the financial info I need but if I've missed anything I can post it.

flower77g

Not enough information to really answer this, but I'd consider asking Nationwide for a five year loan on £27K, accepting whatever rate they offer and after a further six months have passed asking them to consolidate it onto the mortgage. The penalty for repaying a Nationwide loan early isn't very much and they have a rate guarantee.