Mortgage and house extension

BoyArden

Hello,

I am currently in the process of re-mortgaging. I have a 75% LTV and want to release funds using a 90% LTV mortgage. The money released will be used to complete an extension on the house and will bring the LTV back to 75% if not lower. I have a couple of issues:

• I don't want to be stuck in a 90% deal for 2 years paying higher rates when I actually have 75% LTV
• I receive a bonus as part of my salary each year and, although this has never been less than 25% of my fixed salary, mortgage lenders don't take this into account

So, what I am looking for is a lender that wouldn't charge early repayment charges or would revalue the house once the building work is complete and give me a more favourable LTV (build time expected to be 3 months.) I also need a lender that will take my bonus more seriously, my employer refers to it as deferred salary as it is not performance based.


I also work from home and so have no commuting/car costs. Do lenders take account of that?


Alternatively, the ideal solution would be for someone to lend us the money for the work, once the work is completed we would then re-mortgage. The work would cost £50-60k and be completed in about 3 months. Is this another option? I can't find anyone that would lend this sort of amount!

Has anyone else been in a similar position or dealt with someone in a similar position? What was the solution?

Thanks in advance!

andy.m_2

Can't you go onto a fee free, no penalty standard rate somewhere, it's only 3 months as you say, then you can geta valuation and hope you are back at the 75%

somethingcorporate

You need to hope there are some comparable sold properties to get you back to the 75% LTV, otherwise you may end up spending that money and not getting back to where you wanted to be.