Loan to finish new house

[eddie78]

We have been building a new house and have a mortgage from one of the banks to do so. However as the build nears completion, we realise that we are going to run short on funds due to a multitude of reasons. Does anyone know whether any of the banks would issue us with a home improvement loan or a personal loan to be paid off over 10 years to finish the house.

 

[newirishman]

Would you not rather increase the mortgage? Home improvement or personal loans are very expensive.

 

[44brendan]

Does anyone know whether any of the banks would issue us with a home improvement loan or a personal loan to be paid off over 10 years to finish the house.

This type of loan would only be available from your mortgage provider and would be assessed in line with your capacity to pay an increased mortgage. Only other option is a personal loan which will be both expensive and unlikely to be granted for a term in excess of 5 years.

 

[Branz]

As well as what 44B says, you need to proceed with caution here because if I read the post correctly, the mortgage may be fully drawn down against an uncompleted house which may cause a problem with the existing lender before you even do a Charles Dickens Oliver.

Whats the arrangement in the paperwork for stage payments, final payment/drawdown of mortgage: it may not even be a mortgage until completion.