Home Improvement loan

Cathy93

Hi all! 
looking for some advice re a home improvement loan. We’ve recently had planning approved for a two storey extension, our next challenge is how we fund it! 
Our home is roughly worth £200k currently but would be around £250k approx post extension. Our mortgage is relativity new (just gone a year) so we owe £180k (without interest). We’ve been quoted 60-65k all in from the builders. Does anyone have advice with the best way, we’ve looked at home owner loans, home improvement loans and the possibility of remortgaging but don’t think we’ll get accepted because we’re so new into our mortgage term. Would the lenders take into account how much the property will be worth? 

Thanks in advance : ) 

jonesMUFCforever

Perhaps the mortgage board would give you better advice?
IMO with a L/V of 90% you are going to find it difficult to raise the money on a mortgage basis. We have no information about your salaries and your existing outgoings - so nothing to go on here.

FaceHead

Spending 65k (+ cost overruns, professional fees etc.)  to add 50k is a decision you have to think hard about, but I'm sure you have. 

Why didn't you just buy an equivalent extended hose for the 250k? If you couldn't afford 250k then, how can you afford 265k now? 

Based on the information presented, it really doesn't seem like you can afford the extension. You might be able to get a personal loan (20-25k) but that leaves you a long way short. Credit cards (temporarily interest free) could allow you to take on debt of up to a similar amount, but you'd be putting yourself in a very risky position, particularly as if forced to sell the house you'd then be selling at a loss. 

I know it's not what you want to hear, but if you want to do work which wasn't in your original house-buying-budget you're going to need to save up for the lion's share of it. 

Sncjw

To spend 65k plus the interest you will be paying to only have 50k added to the house is madness unless it's really needed. Plus think of the money you will have to pay in fees if you sell the house so even less money. 

Thrugelmir

At the current time you've no equity to borrow against to fund the work. Future value isn't taken consideration. As far as the lender is concerned you may never finish the work. Suggest you make a concerted effort to save money and overpay the mortgage. Then you can either release equity at a later date or sell up, and move to another property. 

DCFC79

How many quotes have you had ?

I have to agree with previous posters, I don't see the logic in what your suggesting OP.