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Gov. Guarentee hitch
G4ry
Posts: 1 Newbie
Hi,
After recently buying our 3 bed house we had our 3rd baby. Ideally I want the 3 children to all have their own bedrooms. 4 bed houses seem out of reach for our borrowing so I thought about extending our 3bed into a 4bed. After phoning netwest to see how much we would be able to remortgage for to build the extension, I was advised that I wouldn't be able to borrow more money for an extension as we are part of the government help to buy GUARANTOR scheme. Natwest says this applies for 7years. I could however sell and move borrowing more. My question is when my 2 year fixed runs out could I go through another company and borrow more to build the extension? or does the 7yr apply to the house rather than mortgage? I would need to borrow 95% using equity to be able to build an extension.
Any help appreciated
Thanks
Gary
After recently buying our 3 bed house we had our 3rd baby. Ideally I want the 3 children to all have their own bedrooms. 4 bed houses seem out of reach for our borrowing so I thought about extending our 3bed into a 4bed. After phoning netwest to see how much we would be able to remortgage for to build the extension, I was advised that I wouldn't be able to borrow more money for an extension as we are part of the government help to buy GUARANTOR scheme. Natwest says this applies for 7years. I could however sell and move borrowing more. My question is when my 2 year fixed runs out could I go through another company and borrow more to build the extension? or does the 7yr apply to the house rather than mortgage? I would need to borrow 95% using equity to be able to build an extension.
Any help appreciated
Thanks
Gary
0
Comments
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When you have enough equity you can remortgage to a new lender and off HTB. However, lenders won't lend based on the future value, so you will have to have enough equity to enable borrowing for the extension, or raise the money some other way and remortgage afterwards.
You will not get a 95% remortgage outside HTB.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 -
Why not?kingstreet wrote: »You will not get a 95% remortgage outside HTB.
Santander do 95% without HTB or is that for purchase only and not remortgage?Changing the world, one sarcastic comment at a time.0 -
Purchase only.
Lenders don't want to offer remortgages at more than 85% to 90%.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
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