Additional Borrowing?? Advice please!

Alsav

Hi,

I purchased my home in November last year for £260k with 90% LTV. I want to extend later this year (single story on the back and double story on the side) but would like advise on the best funding options. I've been quoted £65k by a builder to complete this. I've done a little research on additional borrowing and am I correct in assuming this wouldn't be an option for me? Halifax who I hold my mortgage with (2 year fixed) offer up to 85% of house value though i am guessing the house value is based on current house value and not a projected value following the extension?

As I'd only be 7 months into my mortgage when I would want to start the extension, remortgaging is not an option for me.

I would probably be able to fund approx £20k of the £65k myself so I would need to borrow approx £45k.

Any ideas on how best to do this?

Thanks

Alsav

Any advice please?

YHM

You are right in terms of a standard mortgage being based on the value now, not the projected value.

For you to do what you want to do, you will need to remortgage. Speak to a good broker about development finance, as sometimes these can be based on final development value.

Schoolworker

Hiya we did a two story back extension last September which is mostly finished and trying to get completion paperwork. We borrowed up to 85% of the original house. Please be aware that even though you have been quoted £65k it will be a lot more.

We were quoted £52k from our builder but several items cropped up as well as we paid for 2 bathrooms, tiling, and kitchen. The overall cost including carpets and flooring etc was £80k so it may not keep to budget.