Remortgaging for home improvements

jde91

Hello,

I can’t seem to find anywhere that explains the process of remortgaging for home improvements. I just want to get my head around how much I can borrow, below is an example...

House cost: £140k
Deposit: £11k
Mortgage paid so far: £10k

Am I correct in thinking that if I remortgaged I could only get a maximum of £21k (as that’s the equity, let’s just presume the house hasn’t gained or lost any value).

Do I need to leave some equity on the property or can I borrow more than the equity (let’s say £40k) to build an extension.

Thanks for the help! :j

Thrugelmir

jde91 wrote: »

Am I correct in thinking that if I remortgaged I could only get a maximum of £21k (as that’s the equity, let’s just presume the house hasn’t gained or lost any value).

Do I need to leave some equity on the property or can I borrow more than the equity (let’s say £40k) to build an extension.

No possibility of a 100% mortgage.

As above. Any proposed extension would need to be funded from existing equity.

Get saving or overpaying the mortgage, whichever is most beneficial.

Samsung_Note2

Would you not be better off getting three estate agents around and have it valued...i didn't think out house would be valued as high as it is,if id presumed...nice surprise to the value.

butterflybook

generally lenders will allow borrowing of up to 90% of the current value for home improvements