Borrowing more

jarv81178

hi, buying a new place soon so taking out a new mortgage, say I wanted to borrow more cos I have a new job now more money…
can I borrow more for a loft conversion when is bed to do this in my 2 year fixed rate and will it affect my interest rate?

aoleks

You can borrow more, but usually
not within the first 6 months. The amount you can borrow also depends on what equity you have in your property, as you’re essentially releasing equity early.

Your current mortgage won’t be affected, it will be an additional loan alongside it, secured on the house.

If this doesn’t work out, a personal loan could be an option, but they’re extremely expensive!

jarv81178

Why but usually
not within the first 6 months? I’ve had a mortgage with another lender for over 5 years just changing lenders and then want to borrow more. Will it hurt my credit score asking after month 2?

sammyjammy

Your post doesn't make much sense, are you expecting to be able to borrow more than the value of the new house?  How much  % deposit will you have?

Snookie12cat

jarv81178 said:

Why but usually
not within the first 6 months? I’ve had a mortgage with another lender for over 5 years just changing lenders and then want to borrow more. Will it hurt my credit score asking after month 2?

Lenders do not allow remortgages within 6 months of ownership for your case. 

You can't borrow more than 95% of the property value and cannot borrow more without essentially incurring the ERCs and yes, the rate will change if your LTV changes. If you want to do this, why don't you just borrow more before you take out the new mortgage and you have enough equity?