Mortgage borrowing & extensions
Mortgage borrowing & extensions
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Discussion

bga

Original Poster:

8,134 posts

267 months

Monday 29th August 2011
quotequote all
We are coming up to remortgage time and are looking at extending the house. At the moment we are at 80% LTV on our current mortgage and the works will come up at 80/90k (and add approx 100k to the house value). Borrowing that against the current value would exceed 100% LTV until the works were completed.

I can get funds for the mortgage from elsewhere, thought this will cause a significant lot of hassle and it's money which is more use in the business at the moment.

Is it possible to borrow additional on a mortgage against final value of a house once the extension works have been performed? I.e. borrow against plans?

I know this is a discussion to have with some brokers but I wondered if there was any PH experience or know-how in tis area first.

Thanks.

scotal

8,751 posts

295 months

Tuesday 30th August 2011
quotequote all
There are a couple of lenders who will do this kind of lending, however your LTV is going to frighten most of them away.
Going to be really tight, and you will need to have a squeaky clean credit history and affordabiltiy will be paramount.

bga

Original Poster:

8,134 posts

267 months

Wednesday 31st August 2011
quotequote all
Thanks for the info.

Credit history & affordability isn't a problem. From a discussion with existing providers it's as you pointed out - the LTV on the existing.

It's looking like getting the money elsewhere may be less hassle.