Borrowing Extra With Mortgage

Money_Wasting_Expert

Is it possible to take a mortgage out 6K bigger than the property value?

The extra money will be used for "upgrades" on our new build, and things such as carpets, blinds etc?

sammyjammy

No, not a chance in hell, look back at 2007 to find out why!

Money_Wasting_Expert

sammyjammy said:

No, not a chance in hell, look back at 2007 to find out why!

I haven't yet found any articles, to say it's not possible?

SpiderLegs

Money_Wasting_Expert said:

sammyjammy said:

No, not a chance in hell, look back at 2007 to find out why!

I haven't yet found any articles, to say it's not possible?

Have you found any articles that say it is?

Brie

it would need to be separate as the mortgage is secured against the house and the amounts for improvements would be considered by the bank to be an unsecured loan.  Realistically though you would be unlikely to get a mortgage for even the full value of the property - from what I've seen 95% is the limit and even that might be difficult.  

Best thing would be to get an easily affordable mortgage, get the house and then get a loan to do the upgrades.  It's possible that between purchase and time to reno the value of the house might have increased significantly to allow you to remortgage - though I would imagine there would be fees.

Money_Wasting_Expert

SpiderLegs said:

Money_Wasting_Expert said:

sammyjammy said:

No, not a chance in hell, look back at 2007 to find out why!

I haven't yet found any articles, to say it's not possible?

Have you found any articles that say it is?

Iv'e seen articles explaining that "Additional Borrowing" is a thing, but not if they still exist.

Hence the reason I created this thread........

Thanks for being so helpful.

MWT

Can you put some numbers on what you want to do in ideal circumstances?

It isn't clear right now if you are trying to find a product that will allow you to borrow over 100% LTV, or something else...

Just tell us property value, deposit and the amount you want to borrow assuming this is a new purchase...

Or the LTV you borrowed at, current amount outstanding and current estimated value if this is additional borrowing on your current mortgage...

Thrugelmir

Money_Wasting_Expert said:

Is it possible to take a mortgage out 6K bigger than the property value?

The extra money will be used for "upgrades" on our new build, and things such as carpets, blinds etc?

Unfortunately not. Not that capets and blinds will add value to the property as far as the lender is concerned. 

getmore4less

Money_Wasting_Expert said:

SpiderLegs said:

Money_Wasting_Expert said:

sammyjammy said:

No, not a chance in hell, look back at 2007 to find out why!

I haven't yet found any articles, to say it's not possible?

Have you found any articles that say it is?

Iv'e seen articles explaining that "Additional Borrowing" is a thing, but not if they still exist.

Hence the reason I created this thread........

Thanks for being so helpful.

The additional borrowing will still have LTV limits like 85%.

The general purchase limit is 95%  there are products that go to 100% if you meet the very strict criteria often involves some form of guarantee.

grumiofoundation

Money_Wasting_Expert said:

Is it possible to take a mortgage out 6K bigger than the property value?

The extra money will be used for "upgrades" on our new build, and things such as carpets, blinds etc?

You are looking to borrow >100% of property value. Products which aren't available any more

https://www.moneysupermarket.com/mortgages/how-much-deposit-do-i-need/

As said the only way to borrow this much would be to take a separate loan out. Which as we are on MSE feel the need to bring up that you have to consider if it is sensible to be borrowing so much. 


Are you in a position to put down a smaller deposit and then pay for carpets etc in cash?

london21

Banks have stopped offering 100%/100%+ mortgages for some time now.
Lessons from the subprime era.