Borrowing on top of mortgage for house extension

Drpepper · Jan 25, 2017

Has anybody on NSC done this?
Im thinking of doing this but just want to know if anybody on here has any further information on doing it?
My house is worth around £280000 and i believe we have around £85000 in equity, im wanting to borrow around £30000. Would anybody have an idea on what i would have to do to get this ect?
Thanks in advance

crasher · Jan 25, 2017

Pretty straightforward as long as you've got a decent history of paying the mortgage. They're always happy to make more money out of you.

We did it when the conversion of our house went over budget (as they always do).

nicko31 · Jan 25, 2017

If you think its worth £280k to the mortgage company its worth £250k, to reduce your equity to £55k you might be pushing it. Best talk to a mortgage broker for a view

chucky1973 · Jan 25, 2017

Im going through same. House worth 300k. Valued last week. Current balance 102k so around 200 in equity. Looking to add Fifty grand for a double extension. Not sure what mortgage to go for.

Drpepper · Jan 25, 2017

crasher said:
Pretty straightforward as long as you've got a decent history of paying the mortgage. They're always happy to make more money out of you.

We did it when the conversion of our house went over budget (as they always do).

Do they do the same checks as when you took out the mortgage? I only ask this as circumstances have changed since we took out our mortgage eg kids and wife gone to working part time

daveybgtt · Jan 25, 2017

Drpepper said:
Do they do the same checks as when you took out the mortgage? I only ask this as circumstances have changed since we took out our mortgage eg kids and wife gone to working part time

We borrowed more with Natwest, had to go through all the rigmarole of applying for essentially a new mortgage, pain in the ass. Why can't they just give me the money and shut the f**k up about "affordability" I'm Davey B, not Some mug!

crasher · Jan 25, 2017

Drpepper said:
Do they do the same checks as when you took out the mortgage? I only ask this as circumstances have changed since we took out our mortgage eg kids and wife gone to working part time

They certainly went through our monthly income to see if we could afford repayments but I don't think it was to the same level as when you first take a mortgage out. If you've had a good payment history I think they'll be pretty flexible within reason.

And putting more on your mortgage is MUCH better for you than taking out a loan.

Doonhamer7 · Jan 25, 2017

I'm just starting to do the same, just went into my building society and they agreed to it in principal in 10mins - just need to complete paperwork

Super Steve Earle · Jan 25, 2017

Just phone your lender and ask them.

DavidinSouthampton · Jan 25, 2017

If you're a decent risk, they'll be falling over themselves tp lend you the money.

In my experience, any application or conversation that goes on, they will only be making sure you can afford it, don't have too many commitments elsewhere etc etc.

dazzer6666 · Jan 25, 2017

daveybgtt said:
We borrowed more with Natwest, had to go through all the rigmarole of applying for essentially a new mortgage, pain in the ass. Why can't they just give me the money and shut the f**k up about "affordability" I'm Davey B, not Some mug!

Lenders are bound by tight regulation on this, they'd get hammered if they didn't.

Stat Brother · Jan 25, 2017

Back in the good old days I did it so many times I forgot which excuse I'd used.
It's quite possible I was living in a flat with 3 kitchens and an extension. :lol:

Superphil · Jan 25, 2017

I've done this 3 times over the years, it's the cheapest way to borrow the money (with regards monthly payments) and assuming you've got sufficient equity for the mortgage company it's a sensible way of borrowing IMO. Make sure that whatever you do, get quotes (multiple) and allow 10-15% contingency to cover unforeseen issues and the fact you will change your mind about certain items, and end up costing you more,

Uncle Spielberg · Jan 26, 2017

In theory it should be fairly straight forward but a few things to consider, 1. Incomes and type of employment, 2. Your age, 3. Any dependents. 4. Any credit cards or loans outstanding, 5. Your credit score and credit search, 6. The type of property, 7. What the additional monies are being used for,8 . Any redemption penalties on your present mortgage rate, 9. the overall affordability of the new total loan and also you have £ 195k on £ 280k now, 69.6% loan to value the extra £ 30k would be £ 225k on £ 280k, 80.3% ltv so much higher and any new rate would be based on a ltv rate of over 80%, so may be higher, also the credit score needed at 80% ltv will be higher than at 70% ltv

The options are 1 further advance, 2. re mortgage, 3. secured loan

Also valuers are being cautious with surveys so if they value it at less than £ 280k this will affect it all and make the rate on the £ 30k higher

The days of the " mirror and pulse " tests are long gone

I have been doing this for over 25 years and helped many nsc people for anyone that needs any help, please pm me

heathgate · Jan 26, 2017

Drpepper said:
Do they do the same checks as when you took out the mortgage? I only ask this as circumstances have changed since we took out our mortgage eg kids and wife gone to working part time

Yes

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Borrowing on top of mortgage for house extension

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