Nationwide won't let us extend

MD737

I'm assuming the mortgage is financially viable for them (if not that's their mistake they made in 2007!) it's just the possibility of us paying it off early at some point that they object to.

lee111s

Switch lenders. Simples.

AnotherJoe

MD737 wrote: »

Keith99: because they asked and my husband was told to be honest. If he'd have lied it would have gone thru. It didn't occur to us that over paying might be seen as a bad thing. Hindsight...

AnotherJoe: that's my main question is it possible to have two mortgages on the same property from two different lenders??

Not two mortgages, one, replace the nationwide one with a larger one.

Thrugelmir

Have you made a formal application for a mortgage or merely enquired?

TrickyDicky101

Extensions are expensive. What's the current mortgage balance, the current property value, and the required increase in borrowing?

You realise you need to have the equity to fund the increased borrowing in the current property and not based on what the property will be worth after the extension has been built?

kingstreet

Mortgage lenders do not like short-term borrowing.

If they get an inkling an application is for finance which is to be repaid in less then five years, they will usually decline it.

MD737

I wish we had known that because it's such a headache. Switching lenders means we won't get the rate we are on now.

I think it was a formal application is that bad? They spent three hours going thru the application. As soon as he was asked about paying any off early then the phone all stopped.

House valued at 490k Current balance 260k, increase by 180k should leave us with a good ltv %. so no not basing it on future house price. We met all their affordability checks.

Neutrinno

glosoli wrote: »

no - you would need to remortgage the full amount

AnotherJoe wrote: »

Not two mortgages, one, replace the nationwide one with a larger one.

This is incorrect. They can certainly look to take out a second charge mortgage if they did not want to change lenders, otherwise remortgage the full amount if you would prefer to (which sounds the best and obvious option as you are not tied in with your current lender anymore).

Best speaking to a broker

Neutrinno

MD737 wrote: »

I wish we had known that because it's such a headache. Switching lenders means we won't get the rate we are on now.

I think it was a formal application is that bad? They spent three hours going thru the application. As soon as he was asked about paying any off early then the phone all stopped.

House valued at 490k Current balance 260k, increase by 180k should leave us with a good ltv %. so no not basing it on future house price. We met all their affordability checks.

89% is not a good LTV, and most lenders won't even allow you to remortgage past 85% of the the value of your property.

If you are on your current lender's SVR now (3.74%) then you could likely get a better rate than that if you were to change lenders, like I said speak to a broker.

nkkingston

If you're on a high fixed rate now (though, if it was 5 years from 2009, presumably you're on the SRC by now?) why wouldn't remortgaging bring it down. Mortgages are about as low as they're likely to go right now, so ti could be a good time to Ditch the Fix (or SRC) and take up a new product.