Remortgaging for Loft Improvement

MouseTrap

Hi all

We are currently looking into having our loft converted and I would be very grateful for any advice, opinions and tips on what are the best options in terms of financing.

To give you some background information, our LTV is currently quite low at around 33%. The extra money needed for the works will push that back up to around 50%.

What options would you suggest looking into? Full remortgage? Second Mortgage? Advance with the current provider? What are the merits and drawbacks of each?

In terms of contingency I was thinking of remortgaging for around 20% more than the cost of works to allow for any overspend and also to pay for new bathroom fittings etc. Assuming I stay with current lender, I can immediately overpay any amount that I don't spend which is good.

Finally, at what stage do I need to start making applications? Once firm quotes are received, or before?

Thanks in advance

ACG

The answer is that it will depend on your circumstances.
I am not necessarily looking for answers to these, just giving you examples of things that will matter:
1) Are you currently tied in to a deal,
2) do you have complications with credit,
3) How quickly do you want the money,
4) What deal are you on at the moment,

MouseTrap

Hey thanks for the reply,

1) No and can repay with no charge
2) No
3) Next month or so
4) Lifetime tracker something like BOE base rate +1.5% with 19 years left

buglawton

Your current mortgage provider may offer a 'home improvement' 2nd mortgage. Interest rate may be competitive, similar to a normal mortgage. But taking it on won't require a renegotiation of any advantageous existing mortgage you may have. Plus you can have a different (shorter?) repayment term on it, providing a goal to reach that's separate from your main mortgage.

peter12345678910

I think a second mortgage will be tidier as you will probably want to pay it off quicker if you can get it and be much better than a loan. Instead of renegotiated the main mortgage which may be more messy.