Hi there 👋 

 

Very new to this self-build / renovation space so any help greatly appreciated!  Looking for some advice on financing a fairly large project…

 

We have recently bought a 1960’s 4 bedroom detached home for £470k with a mortgage of 405k. The mortgage is fixed up until October 2023 when we would like to start our renovation; 2 story-side extension, one story rear extension and a re-modelling of both the ground and first floor layout. We have estimated that we will initially need a £200k budget (worth noting this is very ball-park, we are yet to appoint an architect).  

 

We currently have £50k in savings however it is unlikely we will have the £200k cash come October 2023. We are therefore looking at the possible routes in which we could finance the project. 

 

I would be really grateful for any thoughts on how you think the most efficient way to finance the project is? 

 

Thanks 

You’re over 85% LTV so your borrowing against collateral is probably max £50k. As you’re also doing major renovation and remodelling then you’ll need to speak to your existing lender anyway. 
 

Depending on your financial circumstances you could use a personal loan and then remortgage or alternatively see if your lender will do a stage payment in arrears like a standard self build mortgage 

 

What is the total expected value when it is completed ..?