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Advice please on borrowing money for extension / home improvements

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I'm buying a house that is a bit of a wreck and we had to pay a bit more than we hoped so need to borrow some money for extension / improvements etc.


Is it a bad idea to add £10k to a £130K mortgage ??? mortgage repayment term is 25, so that will make it an expensive way of borrowing right ?? am I better getting a loan - where do I go for these sort of loans ??


I've got to confirm the mortgage amount by Tuesday :help:

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It all depends on your ability to pay it back and the interest rates plus the type of mortgage but using the calculator below and assuming an apr of 4% average for a 130k repayment mortgage over 25 years compared to 4% apr for 120k repayment mortgage for 25 years plus additional personal loan at 6% apr for 5 years you would be paying back:


130k over 25 years = 300 payments of £686.19 = £205857




120k over 25 years = 300 payments of £633.40 = £190020


10k over 5 years = 60 payments of £193.33 = £11599.80

Total = £201619.80




In theory its slightly cheaper to go for an unsecured personal loan but obviously you pay a lot more out over the first 5 years than you otherwise would hence most people would opt to add it to the mortgage to make life easier.


There are obviously many other factors to take account of and the size of your loan to value will dictate the mortgage rate you will be able to get etc.


If you are looking for someone to help with the plans for the extension the would also be happy to offer you advice and a quote for the work.

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