Borrowing for an extension without equity

A_Million_Ideas

Hi,

Husband and I currently have a mortgage with an 86% LTV (owe approx £115k on £135k house). We would like to build a 2 story extension to create extra living/sleeping space for ourselves and our 2 young children.
Our problem is that we don't have enough equity in the house to be able to remortgage with its current value, however, once the extension is completed the value of the house would have increased.
So, is it possible to borrow more from a mortgage provider than the house is currently worth to increase the value of the property so we'd still end up with roughly the same LTV?
It'd take too long to save for an extension and with our kids growing we're at the point in our lives where the space would be most beneficial now. We love the house/street/neighbours so don't want to consider moving to an already extended property. Any help /advise would be appreciated?

foxy-stoat

A_Million_Ideas wrote: »

So, is it possible to borrow more from a mortgage provider than the house is currently worth to increase the value of the property so we'd still end up with roughly the same LTV?

Unfortunately not.

haras_nosirrah

There is potentially a way yes

ACG

You could probably remortgage to 90-95% but that would probably not be enough for a double storey extension.

You MAY be able to get up to 100% LTV on a secured loan but the rate would be around 15-25%.

Probably cheaper to get a couple of credit cards and pay it on that and then remortgage to consolidate the debt once the value has gone up (assuming it does). It might be worth having a serious think before doing that however as Brexit is coming, I have seen estimates on house prices dropping by up to 30% to a rise of 4% this year so even the professionals can not decide on what will happen within the next 12 months.

xyz123

If you are going to spend say £40k on extension, please don't expect his evaluation to go up by that much.... Time to be a bit realistic I think....