Re-mortgage advice and add debts onto it

houseowner81

Hi, I have a question about re-mortgaging and adding debt from a loan onto the my mortgage?

I have to renew my mortgage in 6 months. I have been on a fixed rate deal for 2 years. The house was bought for 130k with a 10% deposit. According to my statement i will owe 110k at the end of the year. According to the likes of sites like Zoopla and with property values increasing around the whole area, it seems the value of the house is now about 140k. I am hoping to get a small extension and new kitchen in the next couple of months, at a cost of about 15k, which I will be getting a loan for. If this were to increase the value of the house further, it would mean potentially owning more equity.

My question is, is it easy just to add this £15k debt onto the mortgage. From looking at mortgage rates and if it were a case the house was now worth £150k now this would mean the loan would be essentially paid straight away and all I would need to worry about would be mortgage (which would almost stay the same price I am paying now).

Hope this makes sense? Ive tried to get some answers from my mortgage provider and bank but neither seem willing to give any advice. Any feedback or advice would be greatly appreciated.

Thank you

Funny_old_game

The value will be based on now not what you propose in terms if building work.

Brokers will confirm, but youd be looking in the region of 85% LTV, which in 140 valuation would mean at most an extra £9k.

houseowner81

Thanks for the reply. The extension will be completed by the time i remortgage, so the house (I gather) will have increased further in value (hopefully 150k mark).

do you mean the most I can add to keep it at 85%ltv, (if worth 140k) is 9k?

thanks