Financing an extension

Pete36

Hi,

I'm looking into raising 50k for an extension. Current situation is mortgage of 170k on a house worth 360k. I earn 50k per annum, wife 40k plus 13k bonus. Current halifax mortgage at 1.99 per cent fixed for two years.

My questions are twofold, if i approach halifax for the additional funds then would they revalue the house on the revised house price after the extension or before? Second, why do they charge 3.89 per cent on additional borrowing when potentially the new gross mortgage (inclusive of the new 50k) would still be below 60 per cent ltv, a premium of 2 per cent sounds very 'toppy' to me.

Thanks in advance

Pete

kingstreet

Current valuation will apply.

The cost of additional borrowing is a commercial decision for the lender. Look at the remortgage options instead.