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When in Process to Borrow for Building Work on Home
Pring
Posts: 40 Forumite
We have an architect working on plans for a kitchen/loft extension to the house. They're working to a ballpark figure of which we know we can afford about 50% up front but would have to borrow the additional 50%. The best route for doing that seems to be Additional Mortgage Borrowing from our existing lender.
I'm struggling to decide when the best point to start the process with the lender is though. Online affordability calculations seem OK, but do we need an Agreement In Principle?
Do we need to have quotes from builders or quantity surveyor to show the bank to get that? If we decide to engage a builder but they can't start for 6 months then should we borrow the funds immediately so that we definitely have them in hand, and incur six months of mortgage payments, or wait until closer to the time and apply then?
Would appreciate input from anyone who's done this before! Thanks!
I'm struggling to decide when the best point to start the process with the lender is though. Online affordability calculations seem OK, but do we need an Agreement In Principle?
Do we need to have quotes from builders or quantity surveyor to show the bank to get that? If we decide to engage a builder but they can't start for 6 months then should we borrow the funds immediately so that we definitely have them in hand, and incur six months of mortgage payments, or wait until closer to the time and apply then?
Would appreciate input from anyone who's done this before! Thanks!
0
Comments
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Options are, get the funds now, draw down and pay the interest.
Get the offer now and draw down when you need them.
Get an offset deal, draw down, and offset funds until needed.
The option you don!!!8217;t want is apply when work has started and the house has been taken apart.I am a Mortgage Broker
You should note that this site doesn't check my status as a Mortgage Broker, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.0 -
Options are, get the funds now, draw down and pay the interest.
Get the offer now and draw down when you need them.
Get an offset deal, draw down, and offset funds until needed.
The option you don’t want is apply when work has started and the house has been taken apart. We had a client a couple of years ago who came to us for remortgage on home improvements. When the valuer turned up, the kitchen was in the back garden and no funds were forth coming.I am a Mortgage Broker
You should note that this site doesn't check my status as a Mortgage Broker, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.0
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