borrowing for an extension

chunky horticulturist

Hi guys, I may be posting to the wrong thread, my sincerest apologies if i am but..... am lucky enough to be in a position where my parents signed their home over to me. Unfortunately it needs a lot of work done and we need to build on a 2 storey extension to the rear. As we don't have a mortgage on the house, are we looking for a mortgage to do the work or a personal loan would you think?? We are looking at about €80,000 and wanted the longest term possible.

muffler

I'll move this to the banking forum in a moment but the one bit of advice I can give you is to look for a mortgage as the interest rates are much lower.

chunky horticulturist

Seei, i thought that's what we would be looking to take out but a friend of ours said because we own the house, we would only be eligible for a personal loan and the max term is usually 5 years and 75,000 cap on borrowing. that would be way out of our repayment comfort zone as we had hoped to spread it over 10-15 years min. thanks tho and i am sorry for posting in the wrong place! beginners unluck!!

Tow

Your friend does not have a clue a mortgage is the way to go, providing you meet all the banks criteria.

chunky horticulturist

phew thanks a million.