Additional Borrowing - What are my options?
Discussion
We're looking to borrow an additional £60k to fund an extension.
Currently fixed with Halifax until Dec 2020, LTV is currently 54% and 22 years remaining. As we're locked in, I ran the affordability numbers on the Halifax calculator and everything stacked up, LTV would be 71% (well under the 85% required). Extra £260 pm, easily manageable as we would still plenty disposable after extra commitment...
So, I completed an AIP this afternoon and "Sorry, we can only lend £12,980"... As my income is self assessed I assumed I had made an error, so checked all entries over the phone with Halifax and they confirmed information was entered correctly. All down to their internal lending criteria. They could however up lending to £43k if I extended the term to 35 years...
So what are my options? Clearly stress tests are far higher than the last time I remortgaged. Shall I suck up the circa £8k early exit fee, remortgage with another provider and release some equity to fund extension? Easier said than done given far stricter lending criteria and the same could happen.
Or, 2nd charge mortgage. I need to do more research, but google suggests it as an option.
Obviously I need to speak with a broker for advice, but as it's BH weekend I will need to wait until Tuesday and look toward the collective wisdom on PH. Rather annoyingly, the builder (my Uncle) is now available in November, so it doesn't give me much time to come up with a solution.
Excuse the rambling, I need a beer.
Currently fixed with Halifax until Dec 2020, LTV is currently 54% and 22 years remaining. As we're locked in, I ran the affordability numbers on the Halifax calculator and everything stacked up, LTV would be 71% (well under the 85% required). Extra £260 pm, easily manageable as we would still plenty disposable after extra commitment...
So, I completed an AIP this afternoon and "Sorry, we can only lend £12,980"... As my income is self assessed I assumed I had made an error, so checked all entries over the phone with Halifax and they confirmed information was entered correctly. All down to their internal lending criteria. They could however up lending to £43k if I extended the term to 35 years...
So what are my options? Clearly stress tests are far higher than the last time I remortgaged. Shall I suck up the circa £8k early exit fee, remortgage with another provider and release some equity to fund extension? Easier said than done given far stricter lending criteria and the same could happen.
Or, 2nd charge mortgage. I need to do more research, but google suggests it as an option.
Obviously I need to speak with a broker for advice, but as it's BH weekend I will need to wait until Tuesday and look toward the collective wisdom on PH. Rather annoyingly, the builder (my Uncle) is now available in November, so it doesn't give me much time to come up with a solution.
Excuse the rambling, I need a beer.
Edited by sagarich on Friday 24th August 19:34
You could extend to 35 years, release the £43k to start the work, and borrow the rest as a personal loan later.
If you’ve enough spare to keep paying back at a faster rate then do so, taking advantage of whatever overpayment allowance you have, which could well be 10% of the outstanding Lee year.
If you’ve enough spare to keep paying back at a faster rate then do so, taking advantage of whatever overpayment allowance you have, which could well be 10% of the outstanding Lee year.
sagarich said:
We're looking to borrow an additional £60k to fund an extension.
Currently fixed with Halifax until Dec 2020, LTV is currently 54% and 22 years remaining. As we're locked in, I ran the affordability numbers on the Halifax calculator and everything stacked up, LTV would be 71% (well under the 85% required). Extra £260 pm, easily manageable as we would still plenty disposable after extra commitment...
So, I completed an AIP this afternoon and "Sorry, we can only lend £12,980"... As my income is self assessed I assumed I had made an error, so checked all entries over the phone with Halifax and they confirmed information was entered correctly. All down to their internal lending criteria. They could however up lending to £43k if I extended the term to 35 years...
So what are my options? Clearly stress tests are far higher than the last time I remortgaged. Shall I suck up the circa £8k early exit fee, remortgage with another provider and release some equity to fund extension? Easier said than done given far stricter lending criteria and the same could happen.
Or, 2nd charge mortgage. I need to do more research, but google suggests it as an option.
Obviously I need to speak with a broker for advice, but as it's BH weekend I will need to wait until Tuesday and look toward the collective wisdom on PH. Rather annoyingly, the builder (my Uncle) is now available in November, so it doesn't give me much time to come up with a solution.
Excuse the rambling, I need a beer.
I would speak to a good mortgage broker, they will sort this for you.Currently fixed with Halifax until Dec 2020, LTV is currently 54% and 22 years remaining. As we're locked in, I ran the affordability numbers on the Halifax calculator and everything stacked up, LTV would be 71% (well under the 85% required). Extra £260 pm, easily manageable as we would still plenty disposable after extra commitment...
So, I completed an AIP this afternoon and "Sorry, we can only lend £12,980"... As my income is self assessed I assumed I had made an error, so checked all entries over the phone with Halifax and they confirmed information was entered correctly. All down to their internal lending criteria. They could however up lending to £43k if I extended the term to 35 years...
So what are my options? Clearly stress tests are far higher than the last time I remortgaged. Shall I suck up the circa £8k early exit fee, remortgage with another provider and release some equity to fund extension? Easier said than done given far stricter lending criteria and the same could happen.
Or, 2nd charge mortgage. I need to do more research, but google suggests it as an option.
Obviously I need to speak with a broker for advice, but as it's BH weekend I will need to wait until Tuesday and look toward the collective wisdom on PH. Rather annoyingly, the builder (my Uncle) is now available in November, so it doesn't give me much time to come up with a solution.
Excuse the rambling, I need a beer.
Edited by sagarich on Friday 24th August 19:34
Avoid a second charge lender unless you really have to as the rate will be significantly higher.
Helicopter123 said:
I would speak to a good mortgage broker, they will sort this for you.
Avoid a second charge lender unless you really have to as the rate will be significantly higher.
Agreed, I'm just getting fidgety as it's BH weekend and now have 3 day wait.Avoid a second charge lender unless you really have to as the rate will be significantly higher.
xjay1337 said:
Speak to Sarnie on here. :-)
Sarnie 
can you assist? How do I get hold of you?
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