Eligibility to get kitchen / bathroom on finance

Hannimal

I am looking to put an offer in on a house. However, it needs a bit of work, including garage conversion, decorating etc as well as a new kitchen and bathroom. I can afford the decorating upfront but not the rest. The bathroom and the garage can wait a while but the kitchen is a bit unacceptable and i'd need it done asap. I have done my maths in terms of affordability and I'm very keen to get the kitchen on a payment plan - I think after the mortgage, bills, insurance, other living costs, I should have somewhere around £500-1000 each month left from my salary to put toward home improvements, so in this sense, I am not worried about my affordability. 
However, it's not at all clear to me if I will be eligible for a finance plan after getting a mortgage on only 10%. I know no one here can tell me for sure whether I'd be able to get one or not, but I need some kind of an idea, especially if it sounds like I'd have no chance of getting a kitchen on a finance plan.

I have a very expensive credit card (AMEX) with a high credit limit, I could put the kitchen on that if all else failed, but I am not wanting to have that as my starting point.

colsten

Can you get extra mortgage?

Can you get a loan?

Can you get % credit cards?

Does the MSE Credit Club eligibility checker give you any more clues?

You might get better answers on https://forums.moneysavingexpert.com/categories/house-buying-renting-selling

Hannimal

Hi, I don't think I'd be able to get extra mortgage as I am having to buy with 10% due to having to put money aside for the renovations from what I had saved for the deposit. The MSE credit club gives me really bad credit score, which doesn't make sense to me as I have always been on top of my finances and have a decent income. It says my credit cards affordability is good and loans affordability is very good, but it also says "Out of our basket of top credit cards and loans, you have a good chance of getting 40% of them." - which does not sound good

GDB2222

"the kitchen is a bit unacceptable"  - will you just give up on the whole purchase if you can't do the kitchen? 

MovingForwards

Not many people like the kitchens / bathrooms in properties, you don't live in either of them.

If you like the property / area and it has potential, but functions for now, you can see yourself living in it for a long time and there's nothing on the market done to the style / colour you want, buy it and save to do the interior to how you want it, or wait for another property.

If neither of the rooms are functional, you won't get a mortgage on it. Just because something is dated or a funky colour, it doesn't make a non-functional kitchen.

You won't get a second mortgage with that deposit, you may not even get a loan after moving and taking on a mortgage. It's also not the best way to start home ownership by borrowing even more. What is good sense is to move in and live with it, what you want on viewing a property, may not be what you want after living in it for several months.

Hannimal

GDB2222 said:

"the kitchen is a bit unacceptable"  - will you just give up on the whole purchase if you can't do the kitchen? 

No. I can finance it over time by saving or I can put it on my credit card. The latter has high APR so it's not ideal, but it's possible

Hannimal

MovingForwards said:

You won't get a second mortgage with that deposit, you may not even get a loan after moving and taking on a mortgage. It's also not the best way to start home ownership by borrowing even more. What is good sense is to move in and live with it, what you want on viewing a property, may not be what you want after living in it for several months.

I've just made an offer on a place that also needs updating. I can't see myself finding a property in my price range that doesn't need a new kitchen and new interiors, because I am a bit fussy and I am on a budget. My monthly outgoings will decrease with a mortgage though, because instead of paying rent and putting money toward saving for a deposit, I'll only be paying mortgage (almost half of my monthly rent now) and can spend what I used to put into savings toward home improvements. So it's all doable, might just take a bit longer than I'd want.

I have just made an offer on another house (EEK!) same road as this one, needing a kitchen and updating and so on. I am now opting for a 15% deposit rather than setting money aside. Might be a less-than-ideal first year of living there but it is better and bigger than the nicely furbished places I can afford in the area. 

MovingForwards

Good luck with your offer 😁

Many of us buy properties that need updating, it's the only way we can get on the property ladder.

I went down the route of a cheaper property, needing TLC, but having some original features. I'm also saving to do the kitchen as it's really not my style / colour and could have a better layout BUT I can cook in it, do the washing / washing up, make my drinks and store my food. The kitchen idea I had when viewing, won't work now I'm living here, but I've a new plan for it which is even better as I know how the space works for me day to day.

The only change I made before moving in was buying white paint and getting rid of the magnolia in one bedroom I've seen enough magnolia in rentals thank you! Now I've been in for nearly 2 months I've started sanding down dark mahogany built-in units in the lounge and will paint them white, while I save up to get the permanent changes to them done.

You have years ahead of you in whatever property you buy, save up and don't put it on credit or a second mortgage. All you are doing is borrowing from money you haven't earned yet!

Don't forget, you are responsible for all the repairs to your home, so you need to save again to cover any unexpected ones.

The excitement of owning your own home far outweighs how the kitchen looks, knowing it's yours as long as you make that payment each month brings a lot of happiness and stability.

Hannimal

Thank you! This is super helpful and I can't wait to hear back from the estate agent (WHY HASN'T HE CALLED YET)
I think I will, however, have to do some of the TLC on credit as I am really stretching my budget to get the mortgage, but I am on a decent income in a secure job, so it would be managed and responsible debt. The kitchen can stay for a while, the floors need doing and the heating installed asap, but within a year I would've paid all that off plus reduced mortgage. The quicker I get it sorted the quicker I can also get a lodger to help me pay it off. So in my circumstances getting some of it done asap, even with lending more, makes sense. 

Best of luck with the kitchen designing and thanks so much for sharing your thoughts!