Do I switch and risk later addition borrowing being rejected?

Jamesp31_2

Just after a bit of advice neededhere.  I have been with Skipton for 5 years, fixed at 2.34%.  Deal ends at end of May.  I have been offered a 5 year fix with Nationwide at 1.79%, Skipton can't match this.  My issue is that we are wanting to build an extension later in the year/next year, we have an architect drawing up plans now and submitting the planning application.  So that will not be granted to tie in with end of current deal.  My main concern is a:  should I stick with a lender who have been good to me over the last 5 years in the hope they will grant additional borrowing when the time comes - probably looking at late summer, or b: switch to nationwide with a better 5 yr fix, and hope that they will consider the additional borrowing?  I am assuming that once planning permission is granted and that we have estimates from builders, any lender would look favourably at adding value to a house??  Obviously neither can tell me as it stands wether they would or wouldnt so based on current mortgage balance, to me makes sense to switch.  What are peoples experiences with Nationwide as a lender?

Thrugelmir

Mortgage lenders do not base decisions on the future potential value of the property. As that doesn't provide security for the money being advanced. Do you have enough existing equity to fund the works ? 

Jamesp31_2

Thrugelmir said:

Mortgage lenders do not base decisions on the future potential value of the property. As that doesn't provide security for the money being advanced. Do you have enough existing equity to fund the works ? 

Yes, theres at least £100k equity in the property.  As the value of the house has increased substantially already I am hoping that taking out additional borrowing wont be too much of a hurdle.  Are there any other options I can look at?  As building works are likely to be in region of £80k

Thrugelmir

Here's a link

https://www.nationwide.co.uk/mortgages/borrowing-more/borrowing-options/

kingstreet

You will need to be with Nationwide six months before you can apply for a further advance.

getmore4less

what LTV are you now and what L:TV would you be if you took the extra borrowing now

Jamesp31_2

I'm at 55% LTV at moment.  With additional borrowing I would be looking at around 80-85% LTV