The envelope dedicated to the works is an excellent means of financing the renovation of a house, an apartment or the finishing works in construction. However, care must be taken to ask for an amount compatible with one’s ability to borrow.
Works envelop and mortgage
The purchase of a house to renovate, a construction project or simply an apartment to be renovated will not be limited to a simple mortgage, you will have to juggle the amount of the acquisition to become the owner and the amount of work required to refurbish the accommodation. It is, therefore, necessary to quantify the two parties to request a good loan and above all to limit the cost of housing credit as well as possible. You should know that the mortgage can also be used to finance work, which allows you to take advantage of a particularly attractive rate compared to a consumer loan.
First of all, it is necessary to validate the feasibility of the project, as well on the accession as on the financing of the works. We must, therefore, define the amount of the envelope that will be requested from the credit institution and also be able to justify them, with quotes or purchase orders. The bank will not accept to release an envelope without proof of the sums requested. It is therefore necessary to be skillful in its costing and to best estimate the amount of renovations to be carried out. Between purchases of materials and professional services, the bill can quickly climb.
How to obtain an envelope during the mortgage?
We must first start by defining its ability to borrow, it is this element that will define the amount that a borrower can get from banks given his income and expenses. We can estimate this amount with calculation tools but also with the mortgage loan simulator, which allows us to study the feasibility of a project. It is therefore possible to request a sum dedicated to the purchase of the property and then a sum dedicated to the works. The banks will then make financing proposals taking into account the ability of the applicant to repay a monthly payment by including the two amounts.
It is strongly recommended to fill in the amount of the envelope for the works as soon as you apply for a mortgage, this allows you to base the study on the amount of the main loan and to take into account the need for financing for the works . It is then possible to articulate the credit arrangement according to the duration and the rate (APR) of the bank. The nature of the work is not necessarily important, it will be as well as possible to finance structural work (masonry, foundations, roofs, frame) as finishing work (insulation, carpentry, floors, paintings, etc.). Good to know: the simulation of the works and the mortgage is free and without obligation.