Funding options for loft conversion

[Wilmslow]

I own two houses, both interest only mortgages as renting house #2.

For main house I want £12K worth of work to convert my bungalow into a nice dormer conversion bedroom with toilet, so really want to get the work done.

Funding is the dilemma. Have cash for the work but would rather keep that 'war chest'. (Currently a permie, but looking at contracting if the market ever picks up once the programme at current place ends circa 2012)

Options are:

1. Interest only for the money - this is only £60 a month but always have the loan - would rationalise this into main mortgage once I go repayment in the future as and when I sell house #1.

2. Loan - this is £540 a month for 2 years, tough but 2 years will soon go. Won't it???

3. Loan - over 4/5 years to make it more palatable, but over double the fees over rough and over with 2 years.

Currently torn between the 2 years and £60 interest only options but no idea which to take!!

Mortgage is for £206K, so part of me is thinkig interest only it, what is another £12K, but this is dangerous thinking.

Very happy to do this as will add a lot more than just the £12K as and when I do move, whenever this is...

[sasguru]

Breaking the 1st law of sockpuppets again - credibility.

[suityou01]

Breaking the 1st law of sockpuppets again - credibility.

I seriously reckon he's one of DP's.

[oracleslave]

I seriously reckon he's one of DP's.

The question is: who's are you?

[BrilloPad]

Why not become a rent boy to pay for it?

[Grinder]

Not sure what you lot are on about - let me take the question at face-value.

I own two houses, both interest only mortgages as renting house #2.

For main house I want £12K worth of work to convert my bungalow into a nice dormer conversion bedroom with toilet, so really want to get the work done.

Funding is the dilemma. Have cash for the work but would rather keep that 'war chest'. (Currently a permie, but looking at contracting if the market ever picks up once the programme at current place ends circa 2012)

Options are:

1. Interest only for the money - this is only £60 a month but always have the loan - would rationalise this into main mortgage once I go repayment in the future as and when I sell house #1.

2. Loan - this is £540 a month for 2 years, tough but 2 years will soon go. Won't it???

3. Loan - over 4/5 years to make it more palatable, but over double the fees over rough and over with 2 years.

Currently torn between the 2 years and £60 interest only options but no idea which to take!!

Mortgage is for £206K, so part of me is thinkig interest only it, what is another £12K, but this is dangerous thinking.

Very happy to do this as will add a lot more than just the £12K as and when I do move, whenever this is...

Interest-only: Why go through the pain of £540/month!!

Make sure you get your quotes in writing and ask them to confirm what happens in the event of a budget overrun. Building jobs usually end up 50-75% more than quote, like IT really :-)

When does the mortgage mature and do you have a repaiyment vehicle?