Moneymakeover Home renovations financing options

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Westsider79

Registered User
Messages
18
Age:
46
Spouse’s/Partner's age:
47

Annual gross income from employment or profession:
E90,569
Annual gross income spouse:
E55,000

Additional income:
Rent a room scheme approx 7000 per annum

Type of employment:
Me, civil servant
Spouse, private sector

Expenditure pattern:
Generally 'savers but savings varies and we spend alot on travel etc
Rough estimate of value of home
E600,000
Mortgage on home
E217,000
Mortgage provider:
Avant
Type of mortgage: flexi
Interest rate
3.04%

Other borrowings – car loans/personal loans etc
None

Do you pay off your full credit card balance each month?
Yes

Savings and investments:
E15,000 savings.

Do you have a pension scheme?
Yes, I have a pre 2003 defined benefit public service pension. Also pay approx 170 per month to AVC
Spouse pays into private pension, with additional AVC of 600 per month.
Do you own any investment or other property?
No.

Ages of children:
15 and 13

Life insurance
Mortgage protection

What specific question do you have or what issues are of concern to you?
Looking to do some home renovations next year, small extension. Would need to borrow around €50,000. Unsure what best way to finance as Avant top up mortgage amount is minimum 75K. Should we look to switch mortgage or get a personal loan over 10 years, which we could pay off early?
 
Thats a very small difference so from main mortgage. I'm assuming you can make lump sum payments to main mortgage as it's variable, I think I would borrow the 75k and make a lump sum payment of 25k to main mortgage.

That said 50k for an extension is not much in this building climate, you could find that goes well over budget!
 
The Department of Education "Basic Building Cost" is €2,420 per square meter. Keep in mind these have vinyl floors, don't plaster walls, etc. That's a basic empty room to minimum standards in a green field site with no access issues. It's as cheap as they can possibly make it. On top of that they allow 12.5% for external works.

Using these figures you're €50k budget allows for a 18 sqm extension. That doesn't include basic plaster, a kitchen, tiles to WC's or any works to the existing house and presumes you'll move out. It allows a small concrete path with a bit of grass but not a paved patio.
All these figures don't include VAT, an architect or engineer to oversee or sign off, planning fees if needed, etc.

In reality you'll need to double you're budget.
 
Thanks appreciate your advise, it's a tiny extension in reality and have received a quote well under 50k which gives scope for growth,will be using some savings too.
Will go back to Avant and see, don't like the idea of borrowing more than we need and not sure how it works if quote is well below the 75k how flexible they are to approve this amount.
Does anyone have experience with Avant and top up mortgages?
 
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