Funding an extension

talbot£

Hi all,

I am a bit lost at the moment as to how I can proceed with an extension I can afford and any advice would be welcome.

My wife and I are homeowners (both 30 years old) and have a property worth around £200k. Our mortgage is around £150k giving us a loan to value ratio of 75% (dangerously close to 80%). We have lost some value on the property in recent times but not a huge amount. We are on a fixed rate mortgage for another 2 years which of course limits overpayments. Out joint monthly income is around £5k and our outgoings are £3k. This leaves £2k for saving and fun. With this we could easily repay additional borrowing if we had somewhere to go.

£50k over 10 years at 8% would be around £600 per month which would be easily affordable and fund our extension.

My problem is I can't see a way of borrowing this money given my loan to value on my house.

My question is, how can I have what i want and can afford - an extension??

Please help.

Many thanks

jonesMUFCforever

Ask your mortgage provider!
If the extension adds value to the property and your loan to value is ok then they should be able to help you.

£50k for an extension is a lot of money though - my house cost less than that! - have you thought that moving might be a better proposition?

talbot£

the mortgage provider won't lend against the future value? is that normal?

also, would a finance house accept my father and his unmortgaged property as a guarantor against the loan? can this be done?

thanks
T

jonesMUFCforever

talbot£ wrote: »

the mortgage provider won't lend against the future value? is that normal?

also, would a finance house accept my father and his unmortgaged property as a guarantor against the loan? can this be done?

thanks
T

Yes and Yes.

However if I was the father I wouldn't touch this with a bargepole!