Remortgaging for building works - brain is totally

fuzzyface

Hello!

So, we are currently in a fixed mortgage with two years remaining. The mortgage is about 220k.

I’m trying to work out how best to create more space at home. If, in two years, we remortgaged - how would we go about taking money out of the house to pay for an extension?

We bought the property for 320k and it’s worth around 420k now. So our initial deposit of 100k is now more like 200k if we sold the house.

If we wanted to stay where we are and do 100k worth of building work, would we need to try and take out a 320k mortgage? I have been trying to work this out in my head and I’m just getting so confused. That seems the only way to release the increased equity in the house?

Thanks - any help in clarifying this for me would be really appreciated !!

dimbo61

Well done if your property has increased by £100K since you bought it.
You can only release the equity when you come to sell.
Can you afford a £320,000 mortgage ?
Mortgage rates have never been this low but will they stay low for another 2/3 years ?
Perhaps if you get some plans drawn up and worked out what you want and how much this will cost you would have a better idea of what is involved.

fuzzyface

I!!!8217;m not sure I!!!8217;d want a 320k mortgage, even if I could afford it (which I probably can!!!8217;t). So it sounds as though we wouldn!!!8217;t be able to do the building work unless we saved up for it. Or we move house to somewhere bigger (which would also involve an increased mortgage as everything larger around here has increased in value too).

jackomdj

dimbo61 wrote: »

You can only release the equity when you come to sell.

Confused by this. So long as op can afford the mortgage you would find someone willing to give it to you, especially as your LTV is still fairly good.

If you are thinking two years before you extend, why not start saving the equivalent of the extra mortgage now so you would be used to it.