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Will lenders consider predicted value after extension?
Extender
Posts: 3 Newbie
Hi All
Does anyone know of any mortgage lenders who are willing to base their mortgage calculations on the predicted value of a property (after completing an extension) rather than the current value?
I'm planning a loft conversion and need to borrow £20K in order to do this. Remortgaging looks like the cheapest method and will also keep my monthly payments nice and low.
I've read in a couple of places that some lenders will consider using the predicted property value for their mortgage calcs (i.e. what the house will be worth after the planned work has been completed). Is this true? The lenders I've spoken to so far are only willing to work with the current property value, so my loan-to-value ratio won't be quite as good once I take out the additional funds.
Any help greatly appreciated!
Does anyone know of any mortgage lenders who are willing to base their mortgage calculations on the predicted value of a property (after completing an extension) rather than the current value?
I'm planning a loft conversion and need to borrow £20K in order to do this. Remortgaging looks like the cheapest method and will also keep my monthly payments nice and low.
I've read in a couple of places that some lenders will consider using the predicted property value for their mortgage calcs (i.e. what the house will be worth after the planned work has been completed). Is this true? The lenders I've spoken to so far are only willing to work with the current property value, so my loan-to-value ratio won't be quite as good once I take out the additional funds.
Any help greatly appreciated!
0
Comments
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No "standard" lender will do this.
You'll need a specialist. An independent broker will help you shortlist the possibles.I am a mortgage broker. You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice. Please do not send PMs asking for one-to-one-advice, or representation.0 -
Thanks for the quick reply kingstreet, I suspected this might be too good to be true!
Now I just have to decide whether to plump for a HSBC home improvement loan (will cost me an extra £100 pcm) or move to another lender instead (will incur a £5K early repayment charge from HSBC but will also keep my monthly payments at the same level they are now!)0 -
home improvement loan - this route will take over 4 years to be as expensive as paying the redemption penalty.I am a Mortgage Broker
You should note that this site doesn't check my status as a Mortgage Broker, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.0 -
Thanks for the advice amnblog! The reason this isn't an obvious choice is due to personal circumstances. I need to keep my monthly payments to a minimum right now (baby no.2 on the way!) and don't mind paying £5K extra over the full 25 year term of a mortgage. In contrast, the HIL is cheaper overall, but costs me £100pcm extra at a time when I need that money for other things. All that considered, does it still make sense to choose the HIL?0
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I can only do the maths. I cannot read your mind.
Always better not to secure extra lending against your property.I am a Mortgage Broker
You should note that this site doesn't check my status as a Mortgage Broker, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.0
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