Monies for works

Mimi_Arc_en_ciel

Hi, 

I'm not sure if this should be here, or in another board.... I'll try here first! 

I own a 1940's property - each year I have had 1 "major piece" of work done (usually no more than £3000) 

I have a few jobs that I would like to do, which are going to cost a substantial amount and I am wondering what's the best way to fund this. 

This will be a "in the future" thing, I am concentrating on paying my debts off at the moment (Currently overpaying them so I should be debt free next year all being well) 

I don't have much savings wise for property repairs (Just had to have the windows and doors replaced as they were in desperate needs) - I also don't have a mortgage on the house. 

Is it worth looking at re-mortgaging? Getting a loan? As much as i would love to "save" - I'll be saving for a very long time. 

grumbler

I don't think this board is the best place for this sort of question.

Remortgaging is, most likely, the cheapest way for long-term borrowing, but for a short time one-off fees can make it the worst option.

Personally, I'd postpone any jobs, except emergencies, until 2023.

FreeBear

grumbler said: Remortgaging is, most likely, the cheapest way for long-term borrowing, but for a short time one-off fees can make it the worst option.

Personally, I'd postpone any jobs, except emergencies, until 2023.

Depending on the cost of the works, a mortgage is going to be cheapest if you are looking at borrowing £25K or more. For lower cost jobs, interest rates on unsecured loans are pretty darned low at the moment. I'm currently looking at around 3.5% APR for a £10K loan. But with interest rates likely to go up in the near future, the days of real cheap loans are numbered.

Another thing to factor in is the cost of building materials - At the moment, they seem to be increasing for the slightest of excuse and availability is sketchy on a lot of stuff. Hopefully, things will settle down over the course of next year and prices stabilise. Maybe the labour shortages will ease up too and it becomes easier to find decent tradesman to do the work.

Mimi_Arc_en_ciel

Thanks Grumbler - I wasn't sure whether to do this board or one of the banking boards. 

I definitely wont do anything until the debts are paid off. I've now come into a position to over pay them so all being well they will be paid off autumn next year. I'm just trying to plan ahead so I know what I am doing  

Mimi_Arc_en_ciel

FreeBear said:

grumbler said: Remortgaging is, most likely, the cheapest way for long-term borrowing, but for a short time one-off fees can make it the worst option.

Personally, I'd postpone any jobs, except emergencies, until 2023.

Depending on the cost of the works, a mortgage is going to be cheapest if you are looking at borrowing £25K or more. For lower cost jobs, interest rates on unsecured loans are pretty darned low at the moment. I'm currently looking at around 3.5% APR for a £10K loan. But with interest rates likely to go up in the near future, the days of real cheap loans are numbered.

Another thing to factor in is the cost of building materials - At the moment, they seem to be increasing for the slightest of excuse and availability is sketchy on a lot of stuff. Hopefully, things will settle down over the course of next year and prices stabilise. Maybe the labour shortages will ease up too and it becomes easier to find decent tradesman to do the work.

I've been asking for quotes to get an idea and it's likely to be around 15-20k - so could potentially do a loan. 

Work men - I think the only decent ones I've found so far is a plumber and a window man lol 

another_casualty

Whatever you do, don't remortgage ! Been there , done that! Ouch! 

Thankfully you'll be clear of your debts in the no too distant .
Getting loans in the future will probably be tougher than now,so try not to expect to be given them as easily in the future or for a large amount without more scrutiny .

Best of luck !

canaldumidi

Just a query on your repayments from your signiture:

Seems strange you've paid off £6K to Tescos on a 3% loan, when you could have paid off the entire Sanatnder loan which is at 12%........

grumbler

canaldumidi said:

Just a query on your repayments from your signiture:

Seems strange you've paid off £6K to Tescos on a 3% loan, when you could have paid off the entire Sanatnder loan which is at 12%........

An older loan repaid by minimum payments?

Mimi_Arc_en_ciel

The tesco loan is an older loan. I'm paying the minimum off on tesco at the moment and over paying the Santander one. Once Santander is cleared I will then over pay the tesco loan.