Mortgage for an extension, how much, are we even eligible?

Russboy

Currently my partner and I own our house outright. Never has a mortgage on it as it was a self build. Conservative estimate is the house is worth £625k.

We want to build an extension and consolidate existing car finance at the same time (around £30k, paying about £800 a month). Total sum required will be between £150k and £200k.

Background - I'm 45, she is 40 and I've been in permanent employment with this employer for 10+ years. Other half self employed. Both have excellent credit scores, no defaults, ever, and don't use our overdrafts. Do have a credit card but we owe nothing in it, basically it's used to earn cashback, has been for years.

Combined annual income of £45k (me £41k, her £4k as she's only just become self employed after raising the kids to school age). Other bills, after existing finance are an average of £1300 a month.

Basic comparison sites say if we went interest only (set to inherit half of £2.4m property portfolio in time) we'd pay out less than the £800 we pay out today on existing finance, great, but doesn't give any indication on eligibility.

Testing the water really, as if we've no chance of a mortgage now, or stupid repayments we'll just wait a few years until we have the funds to build the extension without taking finance.

Any advice gratefully received.

Russ

haras_n0sirrah

It is doable. With interest only some lenders criteria is earning more than £x (which you wouldn't pass on) and others say you have to have a certain amount of equity over and above the mortgage (which you should pass on)
I would expect you to be looking more towards 160-175k rather than the 200k

DCFC79

Credit scores arent seen by anyone except you, credit history is used and there are 3 agencies lenders etc can check to base the decision on.