House Renovation/Extension best way to finance

OscarThacker

Hi I am new to this but here goes.
We are looking to start a scheme of renovation and extension on our house. We would like to pay off the works prior to our mortgage renewal in 3 years time. What’s the best way to finance ? I have read that maybe two 0% credit cards could work ? A money transfer and a payment one? That said you have no idea on how much credit limit you will get until you apply ie have a hard check against you ? So how am I to know this a option that will work ? Any other options ? 

[Deleted User]

It all depends on your circumstances. Income, indebtedness, credit history, available credit, amount needed, equity, whether your suppliers accept cards and so on. 

OscarThacker

Pretty much what I thought, although you can get money transfer 0% credit cards can’t you ? To transfer straight Into your bank. Issue still stands there is no way of understand how much I would be offered 

[Deleted User]

Yes, but the fees are higher. That's why you need to go through the options based on your situation.

Some cards will give you a good indication of your limit but again, they may not offer the best deal.

ThriftyMister

OscarThacker said:

Hi I am new to this but here goes.
We are looking to start a scheme of renovation and extension on our house. We would like to pay off the works prior to our mortgage renewal in 3 years time. What’s the best way to finance ? I have read that maybe two 0% credit cards could work ? A money transfer and a payment one? That said you have no idea on how much credit limit you will get until you apply ie have a hard check against you ? So how am I to know this a option that will work ? Any other options ? 

MBNA who are the leading provider of 0% Money Transfers tell you your limit off the back of a soft-search.

Many lenders are starting to provide customers an accurate figure of what to expect before they submit a full application, Santander do this now too.

MBNA also ask "What limit would you find useful?" during the application and attempt to accomodate it if their asessment of you is sufficient for them to feel comfortable with what you've asked for. 

born_again

What sort of cost are you looking at?

creamleg

I am a newbie; first post! Please help…my wife and I are in early retirement (60s), debt free on a house valued at £1million. We’re looking to finance house extension costed at £250,000. We have savings of £100,000 (which we dont want to use on the house in case we need eg health/new car etc) and an income of state pension  and work pension amounting to £35,000pa. We will inherit £500,000 in 5 years time.
How/what/where is the best way to finance the borrowing?

CliveOfIndia

You'd be better off starting your own thread rather than resurrecting one that's over 4 years old.

But for £250,000 your not going to get either credit cards or an unsecured personal loan that comes anywhere near close to that sum.  You only realistic option would be to try and obtain a mortgage on the house, repay it in 5 years when you inherit and suck up any early settlement fees that may be applicable.

It may be worth considering why you want to extend.  Obviously I know nothing of your circumstances, but on the face of it a retired couple living in a £1 million house should have plenty of space available?