Hindsight's a great thing

Otuama

Hi all, this is a classic long one from me.

In case you fall asleep before reaching the end - I'm after some advice of the best route I should take for a situation we find ourselves in.

I have a house (co-owned with my Mum) that we paid cash for.  The renovation works (£149k worth), we're paying with cash.

We don't have a mortgage, we didn't need a mortgage..... FANTASTIC.

However, I'm starting to get increasingly concerned that we'll have a house but no furniture etc.

There are a number of personal reasons why we need to get the house as finished as possible when we plan to move in late October / early November.

I thought to myself, I have a good credit score across the board with all 3 CRA's (I don't want to get into the discussion of Credit Scores aren't a thing or irrelevant - Find another post of mine for that  ), I'll get a mortgage (First Charge).

We're thinking £60k over 10yr term - Barclays mortgage calculator said payments would be £650/mth - absolutely manageable.

Got in touch with a broker but because the property doesn't have a kitchen (it did 3 months ago) I can't get a mortgage. 

Damn - If I'd had a crystal ball I would have sorted this a while ago - so this is my ignorance.

Ok........ I'll get a secured load.

Nope, I can't do this because I don't have a mortgage.  I can't get a mortgage because I don't have a kitchen.. I can't get a kitchen because the renovation isn't ready for it yet.

I contacted the broker and putting in a basic temporary kitchen will likely not cut it and although technically habitable, if the ceilings haven't even been put up it'll mean I won't be able to get a good mortgage or turned down - £1k on a cheap kitchen for nothing.

Once the renovation is further along I can then apply but it'll take 8 - 10 weeks.

Next, a personal loan.

Pre-approved offer with Admiral = £40k, 8 years, £700+ per month - £27k interest. ---- Total £67k
Manageable but extortionate 

Spoke to Barclays today = £50k, 5 years, £1510 per month - £40k interest ---- Total £90k
So much for customer loyalty - Blood sucking ghouls !!!

I may be mad, ignorant and desperate but I'm not a complete moron.

-----

I'm realising that I'm running out of options.

So now I'm considering a more hands on approach

0% spending cards.

I've done a check on MSE & I'm 100% pre-approved for a load of them - the top max number of months being:

M&S - 0% for 24 mths (then 29.9%)
MBNA - 0% for 22 mths on purchases made in first 60 days (then 24.94%)
Lloyds - 0% for 21 mths (then 24.94%) 
Tesco - 0% for 20 mths (then 24.94%)

0% money transfer.

On MSE I put in £60k for the amount I'd want - based on the figure I had for the mortgage.

MBNA

• 100% pre-approved
• 0% for 9 months (to get 0%, transfer within 60 days)
• Minimum credit confirmed when I apply
• Transfer fee = 4%

Virgin Money

• 60% chance
• 0% for 12 months (to get 0%, transfer within 60 days)
• Minimum credit confirmed when I apply
• Transfer fee = 4%

Virgin Money

• 60% chance
• 0% for 12 months
• Minimum credit confirmed when I apply
• Transfer fee = 4%

The above obviously isn't ideal and even though I use my credit card for daily spending, I don't like being in debt.

Of course, a loan, mortgage etc is debt but I'm certainly more wary about going the card route.

However, if done correctly it could work out quite well.

And then I wonder..... can I then get a mortgage and pay off what's been spent on the card(s) or transfer ????

----

Thanks

Emmia

Otuama said:

Hi all, this is a classic long one from me.

In case you fall asleep before reaching the end - I'm after some advice of the best route I should take for a situation we find ourselves in.

I have a house (co-owned with my Mum) that we paid cash for.  The renovation works (£149k worth), we're paying with cash.

We don't have a mortgage, we didn't need a mortgage..... FANTASTIC.

However, I'm starting to get increasingly concerned that we'll have a house but no furniture etc.

There are a number of personal reasons why we need to get the house as finished as possible when we plan to move in late October / early November.

I thought to myself, I have a good credit score across the board with all 3 CRA's (I don't want to get into the discussion of Credit Scores aren't a thing or irrelevant - Find another post of mine for that  ), I'll get a mortgage (First Charge).

We're thinking £60k over 10yr term - Barclays mortgage calculator said payments would be £650/mth - absolutely manageable.

Got in touch with a broker but because the property doesn't have a kitchen (it did 3 months ago) I can't get a mortgage. 

Damn - If I'd had a crystal ball I would have sorted this a while ago - so this is my ignorance.

Ok........ I'll get a secured loab

Nope, I can't do this because I don't have a mortgage.  I can't get a mortgage because I don't have a kitchen.. I can't get a kitchen because the renovation isn't ready for it yet.

I contacted the broker and putting in a basic temporary kitchen will likely not cut it and although technically habitable, if the ceilings haven't even been put up it'll mean I won't be able to get a good mortgage or turned down - £1k on a cheap kitchen for nothing.

Once the renovation is further along I can then apply but it'll take 8 - 10 weeks.

Next, a personal loan.

Pre-approved offer with Admiral = £40k, 8 years, £700+ per month - £27k interest. ---- Total £67k
Manageable but extortionate 

Spoke to Barclays today = £50k, 5 years, £1510 per month - £40k interest ---- Total £90k
So much for customer loyalty - Blood sucking ghouls !!!

I may be mad, ignorant and desperate but I'm not a complete moron.

-----

I'm realising that I'm running out of options.

So now I'm considering a more hands on approach

0% spending cards.

I've done a check on MSE & I'm 100% pre-approved for a load of them - the top max number of months being:

M&S - 0% for 24 mths (then 29.9%)
MBNA - 0% for 22 mths on purchases made in first 60 days (then 24.94%)
Lloyds - 0% for 21 mths (then 24.94%) 
Tesco - 0% for 20 mths (then 24.94%)

0% money transfer.

On MSE I put in £60k for the amount I'd want - based on the figure I had for the mortgage.

MBNA

• 100% pre-approved
• 0% for 9 months (to get 0%, transfer within 60 days)
• Minimum credit confirmed when I apply
• Transfer fee = 4%

Virgin Money

• 60% chance
• 0% for 12 months (to get 0%, transfer within 60 days)
• Minimum credit confirmed when I apply
• Transfer fee = 4%

Virgin Money

• 60% chance
• 0% for 12 months
• Minimum credit confirmed when I apply
• Transfer fee = 4%

The above obviously isn't ideal and even though I use my credit card for daily spending, I don't like being in debt.

Of course, a loan, mortgage etc is debt but I'm certainly more wary about going the card route.

However, if done correctly it could work out quite well.

And then I wonder..... can I then get a mortgage and pay off what's been spent on the card(s) or transfer ????

----

Thanks

If it's furniture you need, can't you just buy it on finance from the places that sell furniture? John Lewis for example has interest free finance.

Or even more MSE could you go down the route of local Freecycle / second hand?

GrubbyGirl_2

I'm confused.  You say you need the mortgage to buy furniture but can't get one because there is no kitchen.  You haven't said that you need money to finish the renovation so surely you finish the renovation then apply for your mortgage?  You won't need furniture until it's ready to move in surely?

If you actually need money to finish then could you not take a loan that is penalty free for early repayment then when the renovation is finished remortgage at that point?

On-the-coast

What’s the definition of a kitchen?
a free standing cooker and a sink would match mine. 

There will be an economical way through this. 

Although if you want all new stuff throughout house it will cost a lot more. 

Hoenir

£60k for furniture..... something doesn't add up.  

singhini

1st of April is April fools day

MEM62

Otuama said:

We're thinking £60k over 10yr term - Barclays mortgage calculator said payments would be £650/mth - absolutely manageable.

How big is this house if furnishing it is going to cost you £60K?

Emmia

MEM62 said:

Otuama said:

We're thinking £60k over 10yr term - Barclays mortgage calculator said payments would be £650/mth - absolutely manageable.

How big is this house if furnishing it is going to cost you £60K?

Or where are they buying the furniture? It's clearly not IKEA.