Borrowing for an extension (is it possible?)

sunday_girl

Hi

Looking for a bit of advice please. We would really like to update and modernise our house and replace the old, falling to bits conservatory with a proper single story extension and reconfigure the downstairs.
Currently with Santander - house value approx £290k and outstanding mortgage £78k. Early redemption fee £2.3k.  We would be looking to borrow nearly £50k for this work (taking us to a 130k mortgage).
We have 13k on car PCP

Less than 1k on credit card (paying down). Basic Joint income is 47k. Does this sound like enough income for someone to lend us this amount? Would we be better to approach a broker or speak to Santander first?
Thanks in advance

K_S

@sunday_girl Based on the limited information in your post, you *should* be able to borrow a total of 130k on an incone of 47k. Of course there might be other issues in the background that are relevant to your chances.

Borrowing extra for home improvements is a perfectly acceptable reason for most mortgage lenders (though some might have conditions if the work is structural or requires the property to be vacant).

In your place my first port of call would be Santander for additional borrowing (afaik they don't allow brokers to do this).

Once you have what Santander is willing to lend and at what terms, you can get in touch with a broker citing your requirements for a capital raise remortgage. They will take into account the ERC, the Santander option and recommend a suitable course of action - which might well be that you go with the Santander additional borrowing.

I hope that makes sense, good luck!

sunday_girl

K_S said:

@sunday_girl Based on the limited information in your post, you *should* be able to borrow a total of 130k on an incone of 47k. Of course there might be other issues in the background that are relevant to your chances.

Borrowing extra for home improvements is a perfectly acceptable reason for most mortgage lenders (though some might have conditions if the work is structural or requires the property to be vacant).

In your place my first port of call would be Santander for additional borrowing (afaik they don't allow brokers to do this).

Once you have what Santander is willing to lend and at what terms, you can get in touch with a broker citing your requirements for a capital raise remortgage. They will take into account the ERC, the Santander option and recommend a suitable course of action - which might well be that you go with the Santander additional borrowing.

I hope that makes sense, good luck!

Thank you very much for your help. I will speak to Santander first and see what they can offer. 

dimbo61

Are you looking at permitted development or full planning permission ?
Have you had plans drawn up and got estimates from builders ?
Are you happy to live on a building site for 6/9/12 months 

sunday_girl

dimbo61 said:

Are you looking at permitted development or full planning permission ?
Have you had plans drawn up and got estimates from builders ?
Are you happy to live on a building site for 6/9/12 months 

We haven't got as far as any of that yet. Looks like I've got some research to do! 

[Deleted User]

Ive borrowed before from Nationwide for home improvements. They just do an affordability test and say how much extra they will lend you. It was all very very easy to do with Nationwide