£100K loan for an extension

PeacefulWaters

PhilJL20 wrote: »

About £54k equity.

That'll be what's squeezing you.

leespot

You could borrow the £33k on the remortgage and try for a couple of big loans? Might not get you all that you need but fairly close.

PhilJL20

PeacefulWaters wrote: »

That'll be what's squeezing you.

Yeah, I'm wondering if there's any alternatives other than going through my existing mortgage provider.

Richey_

OP you will be -34k on your mortgage as far as your mortgage provider is concerned. 100% mortgages don't exist let alone what you are asking for.
iMHO scale down the plans as you would unlikely be able to get 5% + 34k in unsecured borrowing.

We all have dreams but they have to be realistic.........

piccybabes

Just something to remember when getting quotes for the work, and hence loan size, builders tend not to add VAT to the quotes they give you, so make sure that the quote is all in.

We got a series of verbal quotes initially which we could afford and when we received the written ones, they all then included VAT, which put our plans on the back burner for a while.

And also add for extras- I'd recommend 8-10% contingency.

AnotherJoe

PhilJL20 wrote: »

Household income before tax is £80K.


Our outstanding mortgage amount is £148K with a monthly payment of £666.


We have no debt, , no kids, and as we only moved in to the house three years a go, any spare cash has been spent on the house, hence no savings.

So you've been spending maybe £20k a year or so on the house? Or do you mean you've spent £19k a year on leisure, and £1k on the house ? Because unless it's a huge money pit it's hard to see how you could have no savings. Because if you've spent 60k on the house and it cost 200k and isn't worth more than that now that was good money after bad.

parking_question_chap

Are you not concened about paying back a £100k loan, when you earn £80k a year combined but have not managed to save any?

In terms of the obvious answer. Have you not thought about actually saving for a couple of years before commencing? If you have a large amount in savings to put down your interest repayments will be much smaller.

Finally you need to consider that there is the potential for issues along the way. I would be inlined to make available an additional 10% contingency just in case.

SalsaDanca

You could consider doing the work in two phases. Build the single store rear extension now for £33k or less, and leave the side extension to be done at a later date.

poppasmurf_bewdley

PhilJL20 wrote: »

Hi All


Hoping you can help me out with some advice.


I'm looking to extend my house with a double extension on the side and a single at the rear. In total, this will cost approximately £90K.


I've approached my mortgage provider but they can only offer £33K of additional borrowing.


We don't have any savings, and as the mortgage company can't help, what are my options, if any?


Many thanks


Phil

You are looking for a loan of £90-100k, yet you say you have no savings, and have years to go yet on your mortgage.

If you have no savings, that means you have been spending everything you earn. How do you propose to pay for a loan?

Superscrooge

A mortgage broker would be able to discuss your options.

I would suggest postponing plans for an extension for a couple of years and saving as much as you can.

With a household income of £80K and no kids. It should be possible to save a good amount towards the cost and then try for a smaller loan in a couple of years.