Advice on house renovations

[Moneyworrier123]

Hi everyone. We recently started the process of renovating our kitchen which will include a lot of building work and will cost around 45k for our forever home. Our plan was to use our 30k savings and then finance the rest on 0% deals/credit cards. But with recent events in the economy, the looming mortgage disaster and seemingly everything in turmoil I’m really having second thoughts on going ahead right now. In terms of our life stage it’s perfect timing. We bought our long term home earlier this year, we plan to get married in 2024 and try for children soon after so I’d like the house done before then really. We are aware though that this means an expensive few years ahead! However are we mad to spend the majority of our savings and get into debt for this when things are the way they are? Right now we are fortunate to be able to save money each month but if the mortgage rises that will change. We have got a fix until March 2024 and around 70% LTV. I think for me it’s just the uncertainty and not knowing what’s going to happen that makes me want to delay things. We’ve paid £1000 deposit on the kitchen which I guess we will lose unless they can put our order on hold for say 6-12 months for us to reassess the situation then. I would feel bad letting down our fitter as he’s spent a lot of time putting the quote together from various trades but I can’t spend 45k to stop myself feeling bad 😂 sorry for the ramble but would appreciate any advice or support on this. Thank you for reading.

I honestly think you’d be mad to go ahead in this climate. Having money available is going to be essential, as the economy is in for a rough ride, so unless you are in watertight employment with certainty that you are not going to lose your job, I wouldn’t be planning on taking any debt outside your mortgage.

I wouldn't in current circs for a kitchen renovation. Assuming that what is currently there is at least useable? We delayed doing ours for three years in our last house whilst we saved up.

If you currently have 'spare' income to save, I'd do that, you then have a cushion if/when prices rise more and if they don't you'll have saved up more of the cost.

We are going ahead with our renovation (inc kitchen!) but a lot of it is essential work to make the house we've bought safe (roof and electrics) to move into or will bring our other costs down (heat pump and solar panels). We are financing a high % from savings and not have to borrow too much.

Thank you both for your thoughts. The current kitchen is absolutely safe and usable, it’s just dated really. We could spend a couple of grand just getting a new oven and maybe trying to install a dishwasher (as these are two big pain points for us) and that would make it much better in the short term. I think you are confirming what I think we need to do and hold off for a while on this.

Is it £45k for literally just the kitchen units, fittings, appliances? Not any building work? If so, you are absolutely mad. £15k debt and trying for a family? Why can't you spend £20k, keep £10k savings and still get a nice kitchen?
If it's including building work which will be reflected in the value of the house, then that's more understandable.

No the 45k is all in - knocking down structural wall, bricking up doors, new doors and window, all the units, appliances, worktop, flooring. Plumbing, electric etc. I think it would add value to the house but then there could be a decline in house prices so it may not add any value necessarily. My gut is telling me to hold off for a while and see what happens. I might regret it if things don’t get too bad but I’m quite risk averse and having 30k savings is quite reassuring right now.

We did buy a new oven when we bought the house - picked a freestanding one that could then go into new kitchen when we saved up for it a few years later. That worked well and meant we had a nice new oven to use and also we didn't have to pay for it at same time as buying kitchen!

Good point if we pick one we can reuse! We’ve officially put it on hold now and feel relieved actually.

There's lots you can do now for a cosmetic update. Great paint options available for units etc. Post a pic here and you'll get good suggestions.

In all honesty if you don't have family yet but are planning to, you may well reconsider your layout or design in the future.

In the meantime I'd consider whether you are better to overpay your mortgage or save it with a view to paying a lump before your next remortgage depending how things look. Getting into the next LTV bracket could save you a lot

You say it's your forever home but you don't even have kids yet - you might find that you have to/want to move much sooner than you have anticipated. Just spice up the kitchen, a new oven, paint the cabinets, maybe change the tiles or even the worktops, a couple of grand could have a transformative effect.

Thank you Nelly and calm down. You both make great points. We have organised overpayments on the mortgage now as on a good fix and are going to plan how to do some cosmetic upgrades to the kitchen in the meantime too!