Additional borrowing for a home extension..

TrevorDove

Hi - hope this is the right forum for my question.

I want to extend my home due to arrival number 3 in August. For the work I want done, I reckon 60k will cover it - however I do not have this kind of money lying around (funnily enough)

My o/s mortgage is £238,00 and the house is probably worth around £280,000.

So, will I be able to borrow against the future value of the house? I have about £16k of my own money to put in - so would need to borrow around £45k - which based on current value would put me on 100 LTV!!!

Any advice, or tips on best way to raise equity greatly received - or is it a case of head down and save hard??!!

Thanks in advance. :beer:

Thrugelmir

TrevorDove wrote: »

So, will I be able to borrow against the future value of the house?

Blunt answer is no. The future value of your property is uncertain. As the works may not even add the amount of the spend to the value. Or there may be a fall in the market in the medium term.

Depending on your mortgage interest rate. Overpaying by every penny you can squeeze out may be the way forward. As less interest paid every month will increase available equity.