Any advice given the mortgage system seems to have gone mad

dunstonh

There has been no indication from lenders that there will be and affordability issue now or when rates rise.

The indication has come from the Bank of England and the regulator requires affordability on higher than current rates.

The issue I seem to be hitting it around loan to value for home improvements compared to a standard remortgage or house purchase

No different. 95% of current value (not future value). As long as the repayments are affordable. it is possible to borrow on a drawdown basis for larger works but that doesnt appear to be what you are after.

sah705

Please excuse my ignorance what is meant by a draw down basis

Thanks

dunstonh

This is effectively where the money is lent to you in stages and the lender checks the progress of the build at various stages before releasing the next stage of funds. It isnt typically used on small building works like an extension. Tends to be used on new builds or more major projects on en existing property (renovations and significant increase in floor space/design)