Borrowing for house work/cellar conversion



  • Sncjw
    Sncjw Posts: 3,487
    First Anniversary Name Dropper First Post
    How are you going to service the loan if you have newborn and also mum not working full-time. You ahve to factpr costs of bringing up baby plus your current bills and then the plan on top. 

    You have to think realistically. 
    Mortgage free wannabe 

    Actual mortgage stating amount £75,150

    Overpayment start date 1/3/23.

    Starting balance £66,565.45

    Current balance £63,787.16

  • fatbelly
    fatbelly Posts: 20,189
    Name Dropper First Anniversary First Post Cashback Cashier
    Have you tried an eligibility check for the 5% loans?

    In your situation I wouldn't go for a mortgage extension. You have more options with an unsecured loan if problems happen
  • Thanks. Yes eligibility score looks good. Mortgage outstanding value is low. That’s what I was more interested in getting thoughts on fatbelly, what extra options would I have with a loan? 
  • Thanks. Yes re meeting affordability criteria. In an ideal world I would like to save it all first, but if we need that space now then not sure its worth waiting for a few years down the line when we may have enough in savings. 

    Would like to pay it off quickly if its borrowed so wasn’t sure if a loan will be better than a mortgage if the interest rates are the same? 

    You sort of contradict yourself here, if you can pay off the borrowing quickly then surely you have scope to save up quicker?
    As suggested above, could you delay 3-6 months and then maybe utilise a money transfer credit card or the likes with 0% fees if you really must borrow?
    Save £12k in 2023 challenge #32
    Saved Total = £12,000 / £12,000
    Save £5k in 2024 challenge #32
    Saved Total = £1,184.85 / £5,000

    Secured/Unsecured loans x 0
    Credit Cards x 6 (total limit £24,250)
    Creation FS Retail Account x 1
    0% Overdraft x 1 (£250)
    Mortgage x £140,250
    Debt = £1,014 (0%APR due 22nd July 2024)

    Charity fundraising goal for 2024 = £1,000 for animal rehoming / dog fostering etc
  • Quickly could be 3-5 years, I was comparing vs a mortgage term which could be a lot longer. Not sure if its too risky using a credit card if I don’t have the means to pay at the end of the 0% rate?
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