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I've made a grotesque error. Can anyone give me advice.

(61 Posts)
LaurieFairyCake Mon 13-Jan-14 16:10:11

Through a series of misunderstandings and an invoice that wasn't quite the same as another my conservatory is twice as much as I thought it would be.

We just borrowed 10k last month to pay for it and now have to borrow 15k more - does anyone know if it's possible to have two lomas close together? The first one was just a personal loan but would be happy to make the second a homeowner one secured on the house.

I've already thrown up today at the misunderstanding. Shitting fuck.

LaurieFairyCake Mon 13-Jan-14 16:10:36

Two loans not lomas

Twitterqueen Mon 13-Jan-14 16:12:24

is it too late to back out?
Is there any way you can talk to the installer and reduce the costs?

I would go for increasing your mortgage - it will be cheaper than a loan I think.

Cat98 Mon 13-Jan-14 16:12:51

Oh no, what a nightmare- sounds very stressful.

Not an expert but can you tack additional borrowing onto your mortgage (called a further advance)? You used to be able to when I worked in a bank 10 years ago, depending on the type of mortgage.

Failing that are there any family members you can approach to borrow from as an emergency?

LaurieFairyCake Mon 13-Jan-14 16:16:17

The builder has already built the foundations! And the dawning realisation between us today was awful for both of us.

If they stop I have the worlds most expensive brick wall. We'd have to remortgage and since we only moved in a few months ago we think it might take too long - we'd need to borrow it in the next 3 weeks.

The builders just put the order in for the glass - he's now put it on hold.

pilates Mon 13-Jan-14 16:37:19

25K seems a lot for a conservatory.

How did you miscalculate by so much?

CogitoErgoSometimes Mon 13-Jan-14 16:37:46

Rather than remortgaging the whole place, can you ask your mortgage lender for extra borrowing? You've got £10k that the builder can use to be going on with. Nothing bad is going to happen to your brick wall and foundations if it sits there for six weeks instead of three is it?

Mintyy Mon 13-Jan-14 16:40:49

I'm afraid I have no practical advice but I just want to say I really feel for you Laurie, you poor thing. I can imagine the sinking feeling when you realised. brew.

pepperrabbit Mon 13-Jan-14 16:45:11

I would definitely speak to your mortgage provider to seek an additional advance. It should not take very long if you meet the repayment criteria, they already have the charge over the house, it should simply be a new offer letter/agreement.
It may well be at a different interest rate than your existing mortgage.
Could you use the same footings for a cheaper conservatory?

Ladyflip Mon 13-Jan-14 16:47:56

Is there any room for negotiation with the builder? Did he explain it to you properly? Can he reduce his costs so that you don't have to borrow quite so much?

So sorry for you, you must feel awful.

LaurieFairyCake Mon 13-Jan-14 16:49:05

We had two projects done.

A garage conversion that was an itemised list with a total cost at the bottom of 9,400 plus Vat.

A conservatory that was an itemised list with a total cost at the bottom of 13,000 plus vat. In this invoice the itemised list details block work, digging out, loads of other things coming to a total of 12,000. Then underneath a sentence that says : installation of conservatory glass, french doors, tying in etc 13,000 plus vat.

Meaning that it's 13k separately for the glass! What's different is that there was a total cost on the first invoice but itemised costs called total costs all the way down the second.

I'm writing this calmly but actually I've thrown up 3 times so far and am practically hysterical

Beastofburden Mon 13-Jan-14 16:49:44

Poor you. Try to have the whole £25k put onto your mortgage. You have much longer to pay it off that way, and you can always overpay if you have the funds.

LaurieFairyCake Mon 13-Jan-14 16:51:13

There were loads of conversations where clearly the builder and I mis communicated including where I said 13 k plus vat is really good for a conservatory (me meaning the whole thing, him just meaning the glass).

Beastofburden Mon 13-Jan-14 16:53:07

And try not to puke any more. Yes, it's a nasty shock. But it will add £25k worth of value to your home, so all you did was invest a bit more than you expected. Another reason to get it on the mortgage. In five years this will all be history. You can afford it - personal loans are expensive so it would be cheaper to get the whole thing on the mortgage instead.

Have a cup of tea and a biscuit, you are probably a bit in shock.

SiliconeSally Mon 13-Jan-14 16:59:20

Huge sympathies, Laurie. I can completely see how this happened.

I hope it will still, in the end, represent actual good value and be an enjoyable addition to your house - even if it is presenting a financial problem at the moment.

So sorry.

Are you and your DH approaching this as a team?

pilates Mon 13-Jan-14 17:10:56

Oh right I can see how it happened - a bit misleading. Not a builder but seems expensive - did you get several quotes?

Yes would put it on your mortgage as would be cheaper option.

So sorry for you.

SnakeyMcBadass Mon 13-Jan-14 17:16:46

How big is this conservatory? 13k seems very expensive for installation and glass.

Bonzodoodah Mon 13-Jan-14 17:19:17

Oh poor you sad Nothing to say but what a nightmare...

mrsminiverscharlady Mon 13-Jan-14 17:59:23

A mortgage isn't necessarily cheaper if you take longer to pay it off than you would a personal loan. Worth overpaying to get rid of as soon as you can. Did you have other quotes? You're not obliged to continue with this builder if it turns out he's more expensive.

Beastofburden Mon 13-Jan-14 18:02:09

mrs a mortgage would definitely be more expensive if the OP kept it for the full term. Just for now, though, if she hasn't budgeted for this, the low payments can help her refinance for the extra cost. And then, as you say, either overpay, or just cash in the different if and when she sells.

EeyoreIsh Mon 13-Jan-14 18:06:17

Did you sign off a contract at the start of the build? £13k for the glass sounds really expensive, unless it's a huge conservatory. I'd try to renegotiate, even a few thousand would help.

secretsofsanta Mon 13-Jan-14 18:13:58

Cant you just pay for the work done and back out?

mrsminiverscharlady Mon 13-Jan-14 18:15:22

I agree in principle Beast but it depends on being able to overpay based on the terms of the mortgage and also having the discipline to actually do it when there are always other things you can spend your money on!

LaurieFairyCake Mon 13-Jan-14 19:29:44

Right this is my problem.

We borrowed £10k only a month ago - we are worried we won't be able to borrow 15k more because of credit footprint - if we'd known how much it was we'd have borrowed 25 k.

It's an option to stop but the brickwork and the groundwork is done - so now I have a square patio with walls grin

Yes, we will try and borrow the 15 and then remortgage as then it will be done and the valuer can confirm its worth it. Worried about remortgaging right now as obviously it's worse than before as it's a half finished project.

Does anyone know if it's a big problem if you borrow 10 one month and then a further 15 the next month?

EddieVeddersfoxymop Mon 13-Jan-14 19:37:11

Being honest (as an ex bank manager), you may be declined your second loan due to credit scores in close succession.

I would say your best bet is to remortgage for the whole £25k that you need, even if that means a hold on progress at the moment. Then you pay off the first loan. The thinking behind that is that it is easier to draw money against a property as it's a secured loan. You would need to explain to your lender about the mistake and that the first loan would be settled with the proceeds of the £25k remortgage. In fact, you could ask them to do it for you, so that they know you're not going to blow all the cash grin. That's quite a normal procedure.

If you apply for a further personal loan instead, there's a high chance you will be declined. The credit score will show your £10k loan and the auto scoring system will not know that you will settle - all it will see is a loan of £10k with the first payment possibly not even made yet, and you're asking for more.

Go with a remortgage.

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