Finance for large extension....

[Rosscow]

We will be starting a large extension/house remodel in the spring, and have already obtained planning permission.

I will be doing the bulk of the work, alongside my soon to be retired site manager father-in-law. Therefore, we're going to be able to do it pretty cheaply.

I'm thinking of a sum around the £60k mark.

There's a possibility that we'll be able to borrow the money from both sets of our parents, with a view to paying them back once finished and re-mortgaged.

I'm presuming that doing the build without involving any lenders until after it is finished will put us in a better position regarding mortgage deals as the LTV will be less?

Anything wrong with what I'm planning on doing?

Cheers

[Rosscow]

Thanks all.

Yes, the obvious concern is that, once completed, I can't get the required additional amount due to affordability rules.

At the moment my mortgage LTV is around 56%.

If we borrow an additional £60k, with the extra value added to the house, I would imagine our LTV would actually drop to less than 55%.

[Rosscow]

Storer said:

Has it occurred to actually talk to the bank first. Get a feel for how they see what you are doing.
If all else fails. Build it and find a new mortgage with a different lender.

Not something I really want to do as the bulk of our existing mortgage is 0.37% above base..... currently paying 0.87%!

[Rosscow]

Welshbeef said:

If that's the case get a few personal loans £25k a pop at 3-6% and clear those down over the mortgage.

Yes, I think this may be the way forward.

Thanks all.