Remortgage Help For Home Extension

Steve.m_6

We currently have a 118k mortgage and have plans for a 60k extension. Current market value for our house is 165k. Our bank say if we were to move, we could aim for a 200k property (offsetting the 43k equity). However, they also say they will not give us the money for the extension as our loan to value ratio is not enough? (even though the extension will push the property value well past 200k...)
Looking at ways to raise the funds for the extension but unsure what would be best.
Considering taking an interest only mortgage with a different lender for the duration of the building work only for the 118k. Taking a home owner loan for the 60k (but dont know if this is an option, or who would be best for this). When the works completed, remortgaging for the total 178k debt.

Any advice?

Any recommendations?

Help!

Thanks

Thrugelmir

If you can afford the increased mortgage amount if your current house was extended. You should be in a position to pay down your existing mortgage quickly.

Build up sufficent equity then go for the extension.

If house prices fall in the medium term you may find it cheaper to move.