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Advice - Remortgaging while in the middle of building work
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GoonerByron
Posts: 54 Forumite
Hi,
Hoping someone can help.
My mortgage period is coming to an end on January 31st 2021, after this my interest will increase considerably so I am starting to look into a remortgage now.
My issue is that I am in the middle of a building project with extra bedroom and bathrooms that will add 80-90k to the value of my home. The outer work is finished, it’s water tight with roof, windows etc but there is still inside construction to do, decorating etc so I don’t know how to value my home on the application or if there is an issue with remortgaging while work is still being carried out.
If I leave it until the work is complete or nearly complete I will probably be cutting it too short for the interest rate rise and be paying a lot extra a month. If I use a valuation of my home prior to any work being done I will get a worse rate and may be cutting it close for what I want them to lend me.
Anyone have any experience or advice in this situation?
Thanks in advance
My mortgage period is coming to an end on January 31st 2021, after this my interest will increase considerably so I am starting to look into a remortgage now.
My issue is that I am in the middle of a building project with extra bedroom and bathrooms that will add 80-90k to the value of my home. The outer work is finished, it’s water tight with roof, windows etc but there is still inside construction to do, decorating etc so I don’t know how to value my home on the application or if there is an issue with remortgaging while work is still being carried out.
If I leave it until the work is complete or nearly complete I will probably be cutting it too short for the interest rate rise and be paying a lot extra a month. If I use a valuation of my home prior to any work being done I will get a worse rate and may be cutting it close for what I want them to lend me.
Anyone have any experience or advice in this situation?
Thanks in advance
0
Comments
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I would be tempted to wait until the work is complete, and accept that I might have a month or two on the higher rate. But in reality these things always take longer than you imagine, and you will need a new valuation - which, given Covid, may be slow. So I guess it depends on how long things may take, and how burdensome are the higher payments.
One option might be to remortgage now, at the old valuation, but with a very flexible product. For example, at least one lender has a 2-year tracker with no ERC, no fees, and free conveyancing. You could sign up to this one now - it would not be the best rate but might be cheaper than your SVR - then when you have completed the building work, remortgage again at the better valuation and market-leading rate.0 -
What options has your current lender offered you?GoonerByron said:
My mortgage period is coming to an end on January 31st 2021, after this my interest will increase considerably so I am starting to look into a remortgage now.0
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