Need advice remortgage

joanne1971

Hi

We have been looking at some of the mortgage calculators and have been really disappointed to see that they are coming back that there are no deals on offer to us. We had thought we were a good risk!!!!

We live in a house valued at 130,000

We have a mortgage of 60,000 on it

We want to remortgage to build an extension (about 50,000)

So a mortgage of 110,000

Obviously the extension will increase the value of the house

We both have good secure jobs with a joint income of 70,000 a yr. With no other debts.

We are 44 and 38 respectively. In 10 years when my husband retires he will get a lump sum of 50,000 we can use to pay of some of the mortgage.

Although my husband will retire in 10 years he will only be 54 then so will still work for another 10 years.

We therefore worked to take the mortgage over 20 years with the possiblity of overpayments.

Please can you advise us where to look for a mortgage and any advice on type of mortgage that would suit us.

J

getmore4less

Which lender are you with,

Look at their extended borrowing to see what LTV they will go to.

With £70k(£4k+pm take home) and a small mortgage you should be able to save loads.

JA1000

My initial concern is the cost of your extension. £50k on a house worth £130k, do you I would say this is nearly the rebuild costs of your house so this extension should double the size of your house. If not I think you need more quotes from builders.

Go to a broker they will sort you out, this will be like taking candy from a baby for them and at the moment this is the bread and butter they are surviving on at the moment so will be able to help.

If you are looking to pay this off sooner then an offset would probably be better. You can work towards paying it off in 10 years and when you get the lump sum use it for something more enjoyable.

joanne1971

Thanks for your help - some more research today suggests if we keep the cost of the extension to £38,000 means that are LTV amount is ok and we should have lots of options. Suppose just depends if we can get anywhere near the space we want for that amount.