cash for extention

catwoman

We own our house outright but have no savings at all. We would like to extend our house which would cost approx £25000-£30000 but don't know the best way to raise the cash or which avenue to go down, please advise.

snarffie

catwoman wrote: »

We own our house outright but have no savings at all. We would like to extend our house which would cost approx £25000-£30000 but don't know the best way to raise the cash or which avenue to go down, please advise.

You have lots of options.

You can remortgage your house to raise the funds to pay for the extension. This will obviously require your house as collateral, so if you fail to keep up payments, you may lose your house. The interest rate is likely to be lower than if you took out an unsecured loan.

You can try for an unsecured loan, which doesn't require your house as collateral. You still have to keep up your payments, of course, but your house is technically 'safer' in the event that you default on payments. The interest rate is likely to be higher than a mortgage.

A trickier, but cheaper possibility is to raise some or all of the funds from 0% balance transfer cards. Go to stoozing.com for info on how this can be done, or search for an explanation on this website. I must say that this option is now more difficult to take advantage of these days. You would likely need a decent salary to raise the money you need.

Best option is to SAVE now and get the extension later...