Additional borrowing - can we ask for as much as possible?

AndyLiverpoolFC

We're about to approach our mortgage provider for some additional borrowing. Their mortgage calculator says we can probably get an additional £49k (which is up to 85% LTV and in line with our income and expenditure).

I know this calculators are anything but certain but are we able to go into Santander and say "We'd like as much as we can possibly get from you (within reason and affordability)" or do we have to say a definite £35k or £40k.

It's for a kitchen/dining room extension. Quotes have been for £35k but we'd like a better kitchen/flooring etc if possible so the more we borrow gives us a bit of contingency and the chance to get a better spec.

What we don't want is to ask for £45k, get refused and find it difficult to discuss lesser amounts with our provider.

Any ideas?

AnotherJoe

They will tell you what the maximum they will lend is.
Just say you are looking for around (say) £45k is that possible, I'd expect them either to say "sorry most we could lend is X" or "good news we could lend up to X+"

You might want to consider if its worth stretching yourself to the max.

Could you wait a few months, save a bit more so you dont need to borrow so much, which may well help with the interest rate, and perhaps also wait for the next sale?

audigex

"As much as we can borrow", while not automatically bad, could sound a little concerning...

Personally I'd ask for the maximum amounts you could borrow at different rates to get a spread of results. For one thing this looks better (as if you're evaluating the options between 25k and the maximum they'd offer), and secondly... it actually lets you evaluate the options and see how much that £10k is really costing you.

eg that extra £10k could end up costing you an extra 1% on your mortgage, and cost you several thousand in repayments overall! You may decide that a nice floor is worth £10k, but not worth £15k after the interest repayments and higher rate over the whole amount

amnblog

It is not just about affordability. Lenders has maximum loan to value limits for additional funding based on the purpose of the extra funds.

Talk to them, asking for £45,000 and only being offered £35,000 is not a problem. Neither is rejecting their offer and going to another lender.