Funding Extension

Familyman01

Hello, first time post after lurking for a long time!

We bought our first house in Sep 2015 for 400k, borrowing 360k on a 2 year fixed deal with Nationwide.

We would like to build an extension this year, but will need to borrow to fund most of it. We were conservative when we took out the mortgage, and can afford more, but we like to not be too stretched!

We were planning to re-mortgage this September, and take the mortgage up to 90% again, which given the house price rise will free up about £55k. Because of rates, the mortgage payments will stay broadly the same, which I like.

However, I am conscious that when we complete the build, our house will be worth more but we will probably be in a fixed deal with a LTV of 90%, but our actual LTV will be less.

Is there any other options?

Thanks,

Family man

Schoolworker

I would be interested in any responses you get as we are Hoping to also do any extension this year but awaiting builders quotes. I would check with NW as I think I read that they only provide equity for home improvements up to 85% but I could be wrong - we are also with NW. Good luck with your plans.

Thrugelmir

Home improvement loans are only available up to 85% of the current value of the property. You may need to build further equity to undertake the work you wish to do.