See summary of situation below
FTB
House purchase €215,000
Savings €95,000
Refurbishment costs €100,000
Estimated value when completed €315,000
Bank has agreed to cover full cost of refurbishment provided we have contingency of 10% in savings (which we do)
I'm looking at a number of options:
1.
20% deposit of house + refurb = €63000 leaving ~27k in savings to start the refurb.
The 27k would not last very long and we would then start pulling from the banks refurb stage payments.
We would be in the LTV<80% bracket here.
= 4 year fix UB @2.6% or 10 year fix KBC @2.99%
2.
20% deposit of house price =€43000 leaving ~ €47,000 after legal fees to start the refurbishment costs and an initial mortgage of €172000
We would make the 47k go as far as we could toward the refurb then take the remainder from the stage payments agreed up front with the bank.
We would be in the 80-90% LTV bracket here
=1 year fix, Then go for <80% when refurb complete
3. 10% deposit of house price only = €21k leaving almost 70k in savings to go towards the refurb. This much in cash could result in us not needing to take any of the refurb money from the bank as we would be able to pay in cash where needed. We could also delay the refurb for a number of months to increase our savings further. We would have the fall back from the bank if needed.
LTV 90%. But after 1 year we would have the refurb complete with our own cash and the LTV would be <80%.
= Variable rate for 1 year then fix
Any thoughts or input here?
Not sure what the best route is.
with any of the options I plan to apply for the 100k refurb from the bank better to have the option than not.
FTB
House purchase €215,000
Savings €95,000
Refurbishment costs €100,000
Estimated value when completed €315,000
Bank has agreed to cover full cost of refurbishment provided we have contingency of 10% in savings (which we do)
I'm looking at a number of options:
1.
20% deposit of house + refurb = €63000 leaving ~27k in savings to start the refurb.
The 27k would not last very long and we would then start pulling from the banks refurb stage payments.
We would be in the LTV<80% bracket here.
= 4 year fix UB @2.6% or 10 year fix KBC @2.99%
2.
20% deposit of house price =€43000 leaving ~ €47,000 after legal fees to start the refurbishment costs and an initial mortgage of €172000
We would make the 47k go as far as we could toward the refurb then take the remainder from the stage payments agreed up front with the bank.
We would be in the 80-90% LTV bracket here
=1 year fix, Then go for <80% when refurb complete
3. 10% deposit of house price only = €21k leaving almost 70k in savings to go towards the refurb. This much in cash could result in us not needing to take any of the refurb money from the bank as we would be able to pay in cash where needed. We could also delay the refurb for a number of months to increase our savings further. We would have the fall back from the bank if needed.
LTV 90%. But after 1 year we would have the refurb complete with our own cash and the LTV would be <80%.
= Variable rate for 1 year then fix
Any thoughts or input here?
Not sure what the best route is.
with any of the options I plan to apply for the 100k refurb from the bank better to have the option than not.