Upping our mortgage by £10,000

bambos

As stated above, this is what we are planning on doing as we want to have a conservatory built. We can absolutely afford the increase in payments and its a better rate than a loan or other borrowing.

We have been initially accepted (telephone interview with Halifax) and have now filled in a formal request online and are awaiting our decision. We put down £22,000 on £138,000 house so our mortgage was £116,000 it's now at £109,000 so we have paid off £7,000 and had the mortgage since May 2011.

They told us in the initial telephone interview that they thought we had a good chance as we are in a good position but I'm wary and wondered what others thoughts were.

Do we have a chance or are we getting our hopes up for nothing (we are desperate for our conservatory) I know no one can predict these things but I wondered if anyone else had done a similar thing or had an experience of doing this with a mortgage.

Edit: we have absolutely no debt apart from the mortgage we became debt free in Early December

kingstreet

AIUI you have to be within 80% of the property value for your mortgage and additional borrowing to work.

Based on the original purchase price, your total borrowing would be 86%, so your success seems to hinge on the property value being more than £148,700.

bambos

kingstreet wrote: »

AIUI you have to be within 80% of the property value for your mortgage and additional borrowing to work.

Based on the original purchase price, your total borrowing would be 86%, so your success seems to hinge on the property value being more than £148,700.

Ah that makes sense Thankyou. Our current property value is £200,000

kingstreet

Is that the Halifax indexed value?

bambos

kingstreet wrote: »

Is that the Halifax indexed value?

No just the value of property in the area. Does their value come out less?

kingstreet

We don't know.

You have the indexed value, then you can pay for a drive-by (c£80), or an internal inspection (c£135).

if you feel things you have done will impact on the value such that these will have to be seen, pay for the internal.

Then, your future indexed values will be based on this inspection valuation.

bambos

kingstreet wrote: »

We don't know.

You have the indexed value, then you can pay for a drive-by (c£80), or an internal inspection (c£135).

if you feel things you have done will impact on the value such that these will have to be seen, pay for the internal.

Then, your future indexed values will be based on this inspection valuation.

Great thanks. No just drive by I think as nothing's changed internally from when we brought it. I love the term drive by.......I don't see them driving all the way out here somehow :rotfl:

kingstreet

They find a surveyor who is in the area on a given day and he fills in a form from a kerbside observation of the property from his car window.

Completely true.

bambos

kingstreet wrote: »

They find a surveyor who is in the area on a given day and he fills in a form from a kerbside observation of the property from his car window.

Completely true.

Oki dokey thanks. If I happen to see a car parked up I will know who it is then. Thanks for your advise it's been very helpful and made things clearer for me.

kingstreet

Have you decided to pay for a drive-by?

Halifax will use its indexed value in the first instance. If it isn't high enough, the cost options are there for you to see if you can get better.

dprice

Don't bank on house being 200k at survey. Just gone through a remortgage - similar houses sell for 180k in local area - drive-by value 158k - Didn't alter our LTV rate as we were conservative going for 70% and not 60%