I gotta say that much of what Rave says does make sense. However when getting a mortgage one doesn't have to stick to paying the minimum repayments. There are plenty of flexible mortgages around these days - and any overpayments reduce interest and allow further overpayments as the monthly payments drop. And if you don't stretch yourself too much then you should be able to do some overpayment every now and then.
Anyway. Back on the other topic. I think we've decided on the bathroom tiles. We'll also settle for cheaper flooring - although there is some nice stuff out there and the area to cover is relatively small it's still better not to spend excessively. Couldn't do any work on it this weekend as I had to be at work, but my parents are still moving it all ahead slowly
Am also looking into letting one of the bedrooms to my friend.