Home Improvement Loan after Moving In

FirstTimePlx

Has anyone considered/ managed to get a home improvement loan straight after moving into your home?

I currently save around £700 per month, which goes towards my ISA and deposit savings, so I can completely afford a further loan. The plan is to extend the kitchen out into the rear garden and do a few more bits to the house as soon as I move in. If it is approximately 2 months to 3 months till completion, that will leave alone 3 months until the mortgage hard check.

Looking for some advice.

Would you consider an unsecured loan? or a tied to the home loan? (cheaper interest rates).

Currently a First Time Buyer.

Thank you

Thrugelmir

You'll need equity in the property to secure the home improvement loan against.  Have you costed the works? 

FirstTimePlx

Thrugelmir said:

You'll need equity in the property to secure the home improvement loan against.  Have you costed the works? 

So I am assuming that secured loan is out of the picture as I will only have 5% equity.

Unsecured rates are so difficult to get; low 3% rates and the such.

Nothing yet as haven’t moved in. But would love to do some work.

I have £8K, but may require another £30K or so (on average for Kitchen extension) of a similar build.

Thrugelmir

You'll be unlikely to obtain a £30k unsecured loan at a competitive rate. 

amnblog

Are you saying you are thinking of applying for a further loan before you have completed the purchase?

No No No

FirstTimePlx

amnblog said:

Are you saying you are thinking of applying for a further loan before you have completed the purchase?

No No No

After completion, approximately 6 months after he initial hard check for the mortgage (approx 3 months after completion).

Justonemorecupoftea

FirstTimePlx said:

Thrugelmir said:

You'll need equity in the property to secure the home improvement loan against.  Have you costed the works? 

So I am assuming that secured loan is out of the picture as I will only have 5% equity.

Unsecured rates are so difficult to get; low 3% rates and the such.

Nothing yet as haven’t moved in. But would love to do some work.

I have £8K, but may require another £30K or so (on average for Kitchen extension) of a similar build.

£38k seems very optimistic for an extension.

Also builders are booked up well in advance at the moment, so you may be looking at 12 months until work gets going, so I wouldn't be applying for any loans until you are in the house and know the full costs of the work and a timescale - you may well have saved more by then.