Extension - mortgage or loan?

Belladonna14

Hello, I have recently joined to ask advice about moving as I am clueless!
However, one of the valuers yesterday has made me doubt the decision of moving, by suggesting that the location, land etc would be hard to find in our small search area. So we are back to considering extending for more space rather than moving.
We are currently in a fixed rate mortgage which I am happy to pay the ERC to come out of if we move.
However if we extend, would it be possible to take the cost of the build as a secured loan, and then remortgage when the fixed rate is up, to avoid the early repayment charge?
We currently have £100,000 equity in the house according to the 3 valuations I have had, but if the mortgage company use the figures which it was bought at we only have £60,000. Taking £30,000 build fee takes us right back to a higher ltv, so I’m not sure they would even secure a loan against it, or whether we would need to remortgage to get the true value.
Thanks in advance!

YHM

Absolutely. A secured loan may be better option, considering the ERC you will be liable for. A secured charge lender would do their own valuation on the property, so the equity should be more reflective of the higher figure.

Find a good broker that can assist with Secured Loans (Second Charge Mortgages).

Belladonna14

Is it better to shop around then rather than use my current mortgage provider? I wasn’t sure if the cost of the fee of the advisor would be the same as the interest for the period until we can remortgage.
Also is it feesible to put the secured loan on the mortgage at the time of renewal, or is it better to run alongside for the remaining period of the mortgage?
Sorry for all the questions. We want to make sure that we make the right decision.