Borrowing more

Varenna14

Hello everyone.

First time poster. Just after some advice on borrowing more!
We have a mortgage of currently 130,000 on our house thats worth around 240,000. We're looking to extend and borrow a MAX of 45k. I rang the bank today and they are only willing to lend us 17k!!
I have been overpaying the mortgage by 200 a month since January (wish I'd started sooner- hindsight and all that). The extra monthly repayments on 45k would be £197 a month, which we can comfortably afford if I stop the overpayments.. However the bank has done it on their one size fits all affordability check (regardless of overpayments etc) and think that we can't ... so what now?
Anyone else had experience with this or ideas as to where else we could get the money?

TIA for your help!

Thrugelmir

Varenna14 wrote: »

However the bank has done it on their one size fits all affordability check (regardless of overpayments etc)

That's because they are recommended to under regulatory guidance. Interest rates in the longer term will rise. People need to be prepared for it.

Continue to pay down your mortgage by whatever you are able. Thereby building equity quicker. The less debt you owe, the less interest you'll pay. There's no easy solutions. All require application and a desire to achieve your goal.

foxy-stoat

Can you borrow £17K on your mortgage and get an unsecured loan of £20K and save for the rest?

Mortgage_Adviser

You can do what Foxy does or remortgage all together to the lender whio can lend you more.
Another option is a second charge mortgage.