Financial Planning for Home Projects

[caggie35]

Hi Everyone. I'm new to the forum and am trying to get some ideas together to help with my DIY. I recently purchased a house and of course want to do it up. I have some skills and feel capable enough of doing it myself.

My main concern is the financing of the whole project. I thought about a loan from the bank, or even putting the cost onto a low rate credit card. I even saw that B&Q have started offering some Financial Services on their website (www.diy.com/accountcard), Account Card, Loans, etc..

Has anyone got any advice they'd want to share on how they financed their projects? I don't fancy rushing into something and finding I run out of money half way through.

Thanks in advance.

 

[JohnD]

1) Save up first

2) if you have to... negotiate a loan. Start with your bank (but look out for charges) and credit card company. Don't just take an overdraft or build up your credit card balance.

3) Never use door-to-door lenders or rogues like Provident.

4) Never take out a secured (on your house) loan, except to buy a house. If something goes wrong (it may) they will take your home

5) Read
http://www.moneysavingexpert.com/banking and
http://www.moneysavingexpert.com/tips (this is not a charging site, and is not sponsored by the advertisers)

6) Don't default on your loans or credit cards. They all share information, so they will know if you are a bad payer. The good ones will then refuse to take you on, and the bad ones will charge extortionate rates.

7) Don't take out the lender's payment insurance. It is usually a ripoff and will seldom pay up.

 

[bernardgreen]

We built our house 25 years ago so the information may no longer be valid.

Save up and work on the house as you can afford to is the best way.

Do things in order of priority. If you want a quick turn round give up luxuries and nights out and use that money to finance the work. It is worth it.

We arranged a home improvement loan which in those days had a lower interest rate for the purchase of the materials. I have heard of people getting similar loans for self build but have no idea of the details.

Open trade accounts with local merchants but pay in cash at teh time you buy or settle the statement the day it arrives. That way you do not build up debts that can suddenly turn round and hit you.

If you have a reasonable mortgage talk to the mortgage company directly. ( local High Street office may not have the expertise ) If the work you plan is going to increase the value of the property and you can convince them you have a sensible plan ( ie bricks before pizzas ) then they may be prepared to advance money for the work and add it to the mortgage.

Above all do NOT take out any loans secured on the house (other the the exixting mortgage) . You could lose the house for a debt of £1000. It would then be sold at a low price and you get a percenatge of anything over the £1000.

 

[caggie35]

Thanks very much for the info. It looks like I need to do a bit more digging around before I commit to anything major then.

Those sites were pretty good and interesting, thanks JohnD.

 

[Moz]

caggie35
can I point out that type of title of your thread used to be blanked by members as Lynda would delete it as Spam ..

God bless her .

 

[caggie35]

Ooops, better be careful how I phrase things in future

 

[Richardp]

It only happened to Moz when he was trying to sell his homemade viagra

 

[Moz]

Ricardo
you gave me that recipce hhhhmmmmm
an having to burn the wood of the mandingo tree (see Rising damp !)....
Ill get you back ..lol

 

[Richardp]

Sorry Moz! I meant to say ''Marmalade''

 

[Moz]

"an theres me burning my own bleedin furniture !"..lol..lol