Mortgaging extension on top of existing mortgage

AlanB1976

Hi all
I am planning an extension to the house in the next year or so (waiting on planning and issues around drainage). But my current mortgage deal is up now. It would make sense to jump into another deal and save on the large % I'm currently paying. I was originally planning on asking for the additional money with a single mortgage (out of a fixed term deal) and then re-mortgaging when done and after when the value of the home goes up. Now that the timing is off I'm wondering if it is possible to mortgage the house as it is now on a 2 year fixed and getting an additional mortgage to cover the renovations (so as not to pay the early termination charges). They would both be under the current value of property but would sit up to the 90% loan to value. Is that possible? Is that sensible or a better way?
Any advice would be greatly appreciated.
Thanks
Alan

dimbo61

What sort of deal can you get from your existing lender ?
Have you looked at Offset mortgages?
Borrow as much as possible and repay existing mortgage and put the extra into the offset account.
Pay the mortgage each month and pile any spare funds into the offset savings account.
As you need to pay lump sums at each stage of the build you have the funds ready.
Having cash in the bank means you can shop round for bargains and strike deals with suppliers.
Your not trying to borrow extra money as the funds are available in your Offset account.
The other benefit is the offsetting effect which helps pay down the mortgage quicker. 
No interest earned so No tax to pay and every penny is " Earning " the mortgage rate.
YBS comes to mind 

AlanB1976

Thanks for the reply. I didn't know about offset mortgages so will definitely look into them. Thanks for the help.
Alan

dimbo61

You can't get a valuation on What you might build even with plans and planning permission.
They will only value something on what it's currently worth.
Getting one mortgage and then a second mortgage or secured  loan will mean paying a higher rate.
Your lender might look at additional borrowing if you have started the work and have " footings done " built to first floor level or Roof completed and weather tight.