Funding an Extension

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ben0101
ben0101 Posts: 9 Forumite
in Mortgages & endowments
Hi all. We have a property and have 50% equity in it. Only 1 year into a 25 year mortgage paying the other 50%. We want to extend and need about £50k to fund it. Would the best option be to remortgage and borrow the 50k against the house? Given we have 50% of equity in it, this makes the most sense to me and I can’t see banks saying no. Then again Im new to all this.

Anyone in the same shoes?

Thanks in advance.

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  • foxy-stoat
    foxy-stoat Posts: 6,879 Forumite
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    Speak to your lender and see if you pass the affordability - assuming you have a couple of quotes for the work so you only need to borrow what you need.
  • enthusiasticsaver
    enthusiasticsaver Posts: 15,594 Ambassador
    First Anniversary First Post Name Dropper I've been Money Tipped!
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    Depends on the size of your existing mortgage and your income and existing commitments. It is not all about the equity.
    I’m a Forum Ambassador and I support the Forum Team on the Debt free Wannabe, Budgeting and Banking and Savings and Investment boards. If you need any help on these boards, do let me know. Please note that Ambassadors are not moderators. Any posts you spot in breach of the Forum Rules should be reported via the report button, or by emailing forumteam@moneysavingexpert.com. All views are my own and not the official line of MoneySavingExpert.
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