Borrowing for home renovation

[mumofweepeople]

I think I'm being thick

I own my property outright. I would really like to extend and do some more building works totalling around £150k. Do I need to take out another mortgage to do this? Is that the only way other than savings?

Yes.

A mortgage would likely be the best and cheapest way of financing a project that size (doubt you'd even get a personal loan that big & the interest rate would almost certainly be higher than a mortgage).

Thanks. I don't even know why I was questioning myself! Looks like I'll be back to having a mortgage again!

Also - have you had realistic estimates? Just have a look at the 2022 Extensions thread, lots of "£150k" projects that have turned into £250k+
I found our architect a bit out of the loop with recent price rises to be honest (we're only having a small side return infill, he reckoned £30-33k and our estimates all came in at £40k+).

@AwkwardPaws27 - this is a case of a 60k project turning out to be more like 150k! Bonkers. I need to have a good think. Being mortgage free is wonderful!

[quote mumofweepeople]@AwkwardPaws27 - this is a case of a 60k project turning out to be more like 150k! Bonkers. I need to have a good think. Being mortgage free is wonderful![/quote]
Ah, makes sense (unfortunately, & you have my sympathy!). It's bloody pricey.
We've got 26 years to go on the mortgage so upping it a bit (we've increased payments rather than term) didn't seem too bad. I'd feel very different if the end was in sight / I was already there!
Might be better than moving though, at least you already know your house & location, no surprises!

@AwkwardPaws27 yes that's true. House prices have shot right up round here. There is no chance I could afford to buy my house now. I need to do some renovations on the ground floor as I've been told I have MS so need to future proof. There is no downstairs bathroom. I'd like to wait till the material costs come down a bit but I don't know if they ever will. Everything is just going up and up! Are you having work done?

@mumofweepeople sorry to hear your reasons for needing the work, that sounds tough.

Yes, we're having a small 7m² extension to our galley kitchen, it'll double the size so we can fit a table & chairs in there (current kitchen falling apart so also replacing that), and then putting up a stud wall so current walk-through dining room can become a separate home office space (both working from home & DC1 on the way, so not practical as it is).
We'll also replace the downstairs bathroom & have to move the boiler as part of the works, it all adds up!

@AwkwardPaws27 it's okay I've pretty much made piece with it.

That all sounds worthwhile. I was to extend out the side to make a wet room, Utility room and also a study. Also wanting to convert the attic into a bedroom suite. Not sure if that's for me or a lucky child! Hopefully me for a wee while anyway.

@AwkwardPaws27 peace not piece! Bloody auto correct.

Just a thought but can you get financial help to do these renovations if you have a disability? I think having an OT will help. I'm sure there are govt/council schemes to help with this.

@Crispynoodle yes! The downstairs work will be VAT free which makes a big difference.

Any chance of moving to a bungalow instead?

Or installing a stair lift or one of those lifts that goes through the floor that are advertised in the weekend papers?

@BarbaraofSeville I'd really rather not move. Im fine just now, wouldn't be able to tell that I have anything wrong with me. The downstairs is big enough that I could just live on the ground floor if needs be.