Re-mortgage advice after an extension

NJS1982

Hi, fairly novice at this, but here goes...

We have just started an extension to our three bed semi. currently the house is worth approximately £215k, we have a Santander mortgage at 4.99% that has just come out of it's better rate, with £176k left to pay over 29 years.

The extension is being funded by us using savings and we hope (!) that the value of the property after this extension will be around £275k (based on estimates from local estate agent).

I have two questions...

1) Does anybody know of any independent (ish) mortgage advisors who do not charge? We used to use one through a local estate agent but it now seems they all charge for this service?

2) Is it possible to re-mortgage BEFORE the extension is completed, or are we stuck paying Santander for another 4 months at this high 4.99% rate until the extension is completed and we can then re-mortgage, based on the new higher property value?

We do NOT want to stay with Santander (loathe their customer service!) and mainly bank online with First Direct.

I realise out LTV will be around the 65% mark, and better deals appear at the 60% mark, so if necessary we can pay a little more and borrow slightly less, if it is significantly better (better being lower monthly payments!).

It would be good to finally get a mortgage where we are not charged for taking it out and also not penalised if we choose to over-pay, even if it is just a chunk of money once a year.

Thanks!

GMS

If you have the funds to complete the extension then do so whilst with Santander. Once works are finished you could look to leave Santander without penalty and get a deal elsewhere based on the enhanced value after works completed.

Most lenders allow overpayments without penalty up to a limit. 10% of capital owed is pretty standard. If you wanted unlimited overpayments then ensure it is worth paying any extra for.