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Loan/mortgage to cover cost of refurb for new house

  • 30-09-2013 11:44AM
    #1
    DebDynamite
    Registered Users, Registered Users 2 Posts: 2,818 ✭✭✭


    We’ve seen a house we’re interested in but it needs a good bit of work: new windows, re-wiring, insulation, new floors, new boiler, doors, walls knocked, garage conversion, etc.

    We think we could get it for a good price, so our mortgage repayments would be pretty low, however, we’re not sure we have enough savings to carry out all of the work.

    Is it possible to get a home improvement loan from the bank, or would the bank be willing to give us some extra money in the mortgage to complete the refurb? The total amount we would need is still a lot less then the maximum amount the banks would be willing to lend us.


Comments

  • #2
    jpogorman
    Registered Users, Registered Users 2 Posts: 69 ✭✭jpogorman


    It sounds like getting a mortgage to cover the property and refurbishments could be a good option for you.

    I am in a similar situation only our refurbishment/extension cost might be closer to 70% of the cost of the property. We are borderline on the full price mortgage approval and I actually don't believe we would get it at this moment in time due to short term complexities. BOI mentioned buying the property and then following up with an equity release for the extension and refurb at a later date. I'm only just starting to look into this option. I'm not sure if it would add additional risk/complexity or cost in the long run.


  • #3
    fricatus
    Registered Users, Registered Users 2 Posts: 4,919 ✭✭✭fricatus


    [QUOTE=DebDynamite;86785338Is it possible to get a home improvement loan from the bank, or would the bank be willing to give us some extra money in the mortgage to complete the refurb? The total amount we would need is still a lot less then the maximum amount the banks would be willing to lend us.[/QUOTE]

    Yes, BOI gave us both the money to buy our home and to renovate it in the past year. They base the amount on what the house will be worth once the work is carried out. There's a lot of paperwork, but I imagine they're still doing it.

    Get a builder to quote you on the job (the estate agent may need to let them into the house as you don't have possession) and then bring that quote to the bank when you're applying.


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