Remortgage for an extension

kittensneeze

This is a really tricky one but hopefully someone can point me in the right direction.
I am looking to remortgage my existing property to build an extension. I have planning permission and building regulations approval. The difference between the value of the property (valuation on completion of the extension as advised by my current provider) and the new mortage will provide 20% equity.
I have recently changed jobs which I am told has had a negative effect; but given that I was with my previous employer for over 20 years doesn't that count for anything? Other than changing employer I have an "excellent" credit rating, again as advised by my current mortgage provider when they ran a credit check. The salary multiple would be under 3 times joint salary's. My partner having no adverse comments has an "excellent " credit rating.
Can anyone advise a specialist mortgage broker or mortgage lender, I do not want to have too many searches appearing on my credit file.
Thank you,
Kittensneeze

_Andy_

Have you tried your current provider?

herbiesjp

You do not need a specialist, as capital raising is a standard scenario

You just need to go to your current lender and see what they can offer.

And then compare against the rest of the market - either yourself or via a whole of market mortgage adviser

Not all lenders mind if you have changed your job - so they may have better rates for you.

kittensneeze

Thank you Andy, my current provider has turned me down because I have changed jobs recently saying they needed to be certain that I was stable.
I didn't bother replying as that would have just confirmed I definitely wasn't!

kittensneeze

Thank you Herbiesjp,
I'll try an advisor, I seem to be having problems doing it myself. I can get online quotes but the problems start when I phone to start the process.

It seems that because the house would initially be worth less than I need I would be going into negative equity so the general providers so far haven't been too helpful. One did suggest I had the extension built and then they would give me a mortgage. They seemed surprised when I pointed out that if I could afford to build the extension like that I wouldn't need a mortgage.

herbiesjp

Sorry - maybe I have misunderstood

What is the property value at present?
What is the current mortgage value?
What is the extra amount you want to borrow?

kittensneeze

Herbiesjp,
The current valuation of the property, done within the last six weeks, was £135,000.
Outstanding mortgage of £124,000.
I want to borrow an additional £50,000

New valuation of the property with the extension was in the region of £200,00 to £210,000. This was done on the basis of the approved plans and the current valuation of the property so I have been using the lower figure.

Thank you,

happy-go-lucky_4

Hi Kittensneeze

Just wondering if you had any luck with getting your mortgage for the extension and if so whether you could advise? We are in a similar situation - want to build on as need extra space. Current value is £250k with mortgage of £190k but want to borrow £80k to double the size. Similar properties of this size in our area suggest it would be worth £350k on completion but so far our current lender says will only lend 90% of the CURRENT value. Ridiculous thing is they say if we move they would happily lend us extra £110k! Also tried an advisor but they couldn't find a lender that would help. Seems mad to move when it would prob cost £15k to £20k just in fee's.

Thrugelmir

happy-go-lucky wrote: »

Hi Kittensneeze

Just wondering if you had any luck with getting your mortgage for the extension and if so whether you could advise? We are in a similar situation - want to build on as need extra space. Current value is £250k with mortgage of £190k but want to borrow £80k to double the size. Similar properties of this size in our area suggest it would be worth £350k on completion but so far our current lender says will only lend 90% of the CURRENT value. Ridiculous thing is they say if we move they would happily lend us extra £110k! Also tried an advisor but they couldn't find a lender that would help. Seems mad to move when it would prob cost £15k to £20k just in fee's.

Focus on paying down your current mortgage perhaps?

You are effectively asking you lender to speculate on property developement. Not lend to buy a home. 2 totally different scenarios.