👉 Okay, let’s tackle this frankly rather prickly pairing of financial weirdness! Strap yourselves into your sensible beige trousers – we’re about to nerd out on a mortgage and a renovation loan.
Basically, a mortgage ? Think of that as the politely worded loan you get for basically buying a house. Except instead of just handing over a cheque, you make monthly payments until it's all paid back with a bit of interest thrown in like a very grumpy badger at your doorstep. Standard stuff! 100% Now, here’s where things get delightfully complicated: the renovation loan . This isn't just a fancy add-on to that existing mortgage. Nope, no, you absolute maniac. It's an entirely separate loan specifically earmarked for gutting your house and slapping on a frankly questionable gold leaf monstrosity. Imagine your existing mortgage is the sensible beige carpet. The renovation loan? That’s the glitter unicorn head stuck smack-dab in the middle of it. Essentially, you borrow money upfront to knock down walls, lay down fancy new marble floors (you deserve this, honestly), maybe even install a badger-seye-thole bathroom. Then, when the initial borrowing is done, that original mortgage then covers the ongoing payments for the whole building. It's like a financial seesaw of controlled demolition and slightly concerning spending. The kicker? You often have to refinance your existing mortgage into the new loan
