Personal loan for garage conversion?
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Hi
We would love to convert our garage. It needs a new roof and we want to turn it into a kitchen. Quote is £22,500.
We are due to remortgage next summer. I would love to have it done before then.
I think we would rather not put the cost onto the mortgage.
We like to see that going down, plus I understand that over the term of the mortgage, even though the interest is loe you may end up paying more than a personal loan.
Do we take out a personal loan... 2.9% for 80 months at 350/mth now, or could that affect our remortgaging next year? Broker said we could just find a new product with the same bank if affordability was a problem. I don't think it will be though. He couldn't assure me as we don't know what the products will be.
Or should we wait and remortgage first?
I'm concerned that interest rates on personal loans/mortgages will go up with brexit.
Thanks
We would love to convert our garage. It needs a new roof and we want to turn it into a kitchen. Quote is £22,500.
We are due to remortgage next summer. I would love to have it done before then.
I think we would rather not put the cost onto the mortgage.
We like to see that going down, plus I understand that over the term of the mortgage, even though the interest is loe you may end up paying more than a personal loan.
Do we take out a personal loan... 2.9% for 80 months at 350/mth now, or could that affect our remortgaging next year? Broker said we could just find a new product with the same bank if affordability was a problem. I don't think it will be though. He couldn't assure me as we don't know what the products will be.
Or should we wait and remortgage first?
I'm concerned that interest rates on personal loans/mortgages will go up with brexit.
Thanks
0
Comments
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I'd remortgage first. Remember also that you're only looking at headline rates, not the rate you might get.0
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Have you had at least 3 quotes for the work? As above you are far from guaranteed to get the headline rate on a large loan.0
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Could you not just save up. Is the conversion a want or a needs.
You say you don!!!8217;t want to add cost to mortgage but your going to be adding costs to finances anyways if you take a loan.Mortgage free wannabe
Actual mortgage stating amount £75,150
Overpayment start date 1/3/23.
Starting balance £66,565.45
Current balance £63,787.160 -
I would save up the £350 a month that you will pay for the loan for a year, if you have saved £4200 this time next year then apply for the loan you need after your re-mortgage (you will only need £18,300). If you haven't managed to save up £4.2K then you would of dodged that financial bullet.
Good luck and report back.0
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