Usiing Equity for Home Improvement

mooredg

Hi,

I've recently bought a house at auction for 139k and have a mortgage of 111k, which is in good condition but I'd like to extend the kitchen. It had recently sold for 169k prior to going into the auction.

I friend was telling me that I could use some of the equity in the house to pay for the extension? I'm not clued up on these matters but how would that work? Would this result in my mortgage and monthly payments going up?

Thanks

Dave

SammyFace

Have you had the house valued Dave?

mooredg

Not yet. Based on the selling price earlier this year and the few cosmetic improvements we've made we are assuming it to be about 169k.

mooredg

Can anybody help?

Senior_Paper_Monitor

At a guess (due lack of details) ....

You will have penalties applicable on the mortgage if you go to another lender (and unlkess you have owned for 6 months that may be additional problme in addition to any affordability etc at higher LTVs)

The current lender is unlikley to consider additional borrowing until you have owned the property for 6 months.

Other than those issues it should be possible - particulalrly if you get the expected valuation (wait until lender values not worth doing any other way, as they are the ones that matter).