Remortgage for Extension Advice Please

dolally_2

Hi,

We have a 2 bed house which we need to extend (already have 2 kids and desperately want to add to that!)

We currently have just under 53k on bos mortgage at svr (£403/month)
We also (rather stupidly) consolidated other debts at the end of 2007 with a 30k secured loan (blemain finance at £331/month). We don't struggle to meet these repayments.

At the end of last year the house was valued at just over 120k. We wish to add on a 3rd bedroom at a cost of about 30k. Obviously this would also raise the value of the house.

Our credit rating is very poor (were with the cccs until last year) but valuation is probably still accurate as we live in a fairly affluent area of scotland with houses still shifting relatively quickly. (3bed house in village on market for 170k just now)

Hope this is enough info for you to let me know what you think my chances are or perhaps suggest a broker to use.

Thanks in advance!

Oh, should probably add that no mortgage arrears!!

lisyloo

Obviously this would also raise the value of the house.

Yes it would but bear in mind that prices are dropping sharply at the moment.

I think you will struggle to get a mortgage for £113K on a £120K house. Your LTV is too high.

You say you are ot struggling to make the payments.
What are you doing with any spare cash you have?
Could you use this to save up or reduce the mortgage?

At one point I shared a bedroom with a sibling of the opposite sex by putting a curtain down the middle of the biggest bedroom.
It was not ideal but at least we did have some of our own space.