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  • FIRST POST
    • Steph2617
    • By Steph2617 29th Nov 17, 4:51 PM
    • 2Posts
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    Steph2617
    Nationwide borrowing more LTV
    • #1
    • 29th Nov 17, 4:51 PM
    Nationwide borrowing more LTV 29th Nov 17 at 4:51 PM
    We are hoping to remortgage in order to fund an extension. We currently have a mortgage with Nationwide on a 2 year fixed rate (due to end April 2019). Based on affordability Nationwide will lend up to an additional £122,000. However based on an 85% LTV we can only borrow another £72,000. This isn't quite enough to cover the work we had planned. Has anyone any experience with asking to borrow up to 90% LTV with Nationwide. If it helps we have an excellent credit rating and have had a mortgage with Nationwide for 13 years now.


    Our other options are
    • To do the extension in 2 stages (although this will cost more than just doing it in one go)
    • To apply for a bank loan to supplement the remortgage and then remortgage again at a later date to consolidate these (we are adding another bedroom and renovating a run down house, so we should add additional value to the house).
    • To remortgage with a different provide who will go up to 90% LTV (and pay the early repayment charge to Nationwide)
    Many thanks for any advice/experience.
Page 1
    • kingstreet
    • By kingstreet 29th Nov 17, 5:30 PM
    • 32,402 Posts
    • 17,395 Thanks
    kingstreet
    • #2
    • 29th Nov 17, 5:30 PM
    • #2
    • 29th Nov 17, 5:30 PM
    You aren't 'remortgaging' with Nationwide as they already hold your first charge mortgage. You are requesting additional borrowing or a further advance. IIRC Nationwide doesn't lend above either 80% or 85%.

    You will therefore need to look at genuine remortgage options. This means a new mortgage with a new lender to repay the current one, with borrowing above that to meet your needs. This will depend on the lender concerned and the usual status and affordability checks.

    As you have identified, a second charge or unsecured loan would enable you to avoid early repayment penalties.
    I am a mortgage broker. You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice. Please do not send PMs asking for one-to-one-advice, or representation.
    • Steph2617
    • By Steph2617 29th Nov 17, 6:28 PM
    • 2 Posts
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    Steph2617
    • #3
    • 29th Nov 17, 6:28 PM
    • #3
    • 29th Nov 17, 6:28 PM
    Sorry I meant that I would ideally like a further advance with Nationwide. My issue is that on their website they state that the max LTV for home improvements is 85%. However they allow new customers who are remortgaging to have up to 90% LTV. I don't really see how one is more riskier than the other. So I wondered if anyone had experienced any flexibility on the further advance max LTV before I spend ages on the phone to them tomorrow.

    We have other options but all seem to be more expensive.
    • Thrugelmir
    • By Thrugelmir 29th Nov 17, 6:40 PM
    • 56,258 Posts
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    Thrugelmir
    • #4
    • 29th Nov 17, 6:40 PM
    • #4
    • 29th Nov 17, 6:40 PM
    Far more risk with "home improvements" than a tangible property to value. Then there's the issue of VAT and the money spent on fixtures and fittings. £ for £ home improvements do not equate neccesarily to an equivalent uplift in value.
    “Opportunities come infrequently. When it rains gold, put out the bucket, not the thimble”
    ― Warren Buffett
    • kingstreet
    • By kingstreet 29th Nov 17, 6:54 PM
    • 32,402 Posts
    • 17,395 Thanks
    kingstreet
    • #5
    • 29th Nov 17, 6:54 PM
    • #5
    • 29th Nov 17, 6:54 PM
    Additional borrowing has a limit of 85% overall.
    I am a mortgage broker. You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice. Please do not send PMs asking for one-to-one-advice, or representation.
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