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borrowing for extension...
james3333
Posts: 752 Forumite
Hi guys,
currently thinking of building an extension on my 2 bed semi.
i have mortgage with halifax and online it says i can get 45k equity out of my house.
what kind of things do i need to look out for if i choose to do this?
i would proberbly need 40k for the extension.
i have 86k mortgage and the house is worth 135k
any advice welcome.
cheers
currently thinking of building an extension on my 2 bed semi.
i have mortgage with halifax and online it says i can get 45k equity out of my house.
what kind of things do i need to look out for if i choose to do this?
i would proberbly need 40k for the extension.
i have 86k mortgage and the house is worth 135k
any advice welcome.
cheers
0
Comments
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bump bump0
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First and foremost will you be able to afford the increased mortgage payments?
After that will the extension add its cost or more to the value of the house, do houses on your street have a ceiling value?
Do you need, or could you get, planning permission?0 -
The main thing to look for is the rate and tie in periods. You will not be able to drawdown on the same product (ie Fixed or Discount, if you currently have one). Say you have a Fixed rate currently with 1 year to go, you do not want to get the drawdown on a 2 year Fixed otherise you will always be running two mortgage products and fees etc.
So if you are on the standard rate currently you could look at taking the whole lot on one Fixed/Discount rate, or if say you have a fixed term finishing in 6 months it would be worth doing the drawdown at their standard rate (ie no tie ins) then changing the whole amount to a new product in 6 months, for example.I am a Mortgage Adviser
You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.0 -
well, my deal runs out in april... so with this in mind i intend to speak to the mortgage guy and see what he has to say!
iam pretty clueless with the whole thing....0
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