to think that remortgaging for an extension isn't going to be possible in the future?

[watter]

Disclaimer - this thread is in relation to people who bought in the last two years

AIBU to think that the days of buying a house, it shooting up in value over the next 2-5 years, remortgaging to fund an extension, simply isn't going to be 'a thing' any more?

If you bought in the past two years, sadly you likely overpaid. This means any appreciation over the next 2-5 years will be minimal. Then even if you did acquire some equity, mortgage rates are such that borrowing more against the home simply will be out of reach of these homeowners.

Well, some would argue it never has been the case that the days of buying a house, it shooting up in value over the next 2-5 years, remortgaging to fund an extension, were 'a thing'. You talk as if that were standard practice that has somehow changed.
I'm not saying that it has never happened to anyone, but it certainly has never been a standard expectation.

If you bought in the past two years, sadly you likely overpaid. This means any appreciation over the next 2-5 years will be minimal.

Mass generalisation there.
One of my dc had an offer accepted this time 2 years ago and moved in 18 months ago.
Another of my dc is currently looking, and there are 2 houses in the same road dc1 lives in, we've looked at on-line tonight. Both more expensive than dc1 paid for very similar houses.

Then even if you did acquire some equity, mortgage rates are such that borrowing more against the home simply will be out of reach of these homeowners.

IME, again, it isn't "normal expectation" to build an extension within a couple of years of moving in (unless that was factored into the original choice of house / price range). People who move, or extend that quickly tend to do so because their income has changed considerably - promotion, or partner moving in so second salary, or inheritance, or where part of the long term plan was to let out a room to a lodger and save all that money.

DH and i probably will be able re mortgage in the future and we bought our house in June 21.

Our previous house we'd lived in for 5 years and made some money on it where DH had done a great job decorating every room and fitting a new modern kitchen.
We came out with a good deposit and with the help of the estate agent we managed to get a steal on the new house.
Our mortgage isn't high (we're south east and paying less than £1k a month currently on a 5 year fixed at 1.64%).

When our 5 year runs out in '26 it will go up to about £1300 a month but we'll be very fortunate at that point to have both children in school so childcare savings will outweigh this.

We do plan to do an extension/loft conversion in the future and I think we will be in a position to do this even with the interest rates being high (although hopefully they'll go down a bit by the time we actually start it).

I think it's unusual for a house to "shoot up" in value sufficiently to fund an extention over 2 years, ever.

We bought march 22. While the value probably has gone done this is not something we are worried about as we will stay here at least another 10 years and likely more.

re our extension we won’t be remortgaging , our mortgage is not huge. We will save up instead!

Hadn’t occured to me that a value shooting up could lead to remortgage to build the extension tbh. No way would I ever expect this even if it was a possibility. I lost a small fortune on my first house and didn’t make a lot on the second. I buy houses to live in not make money!

I think it really depends where you are. We exchanged in 2021, completed 2022 and have made almost £100k at last valuation ( have a friend who is estate agent)

So in some cases there will still be equity. I guess it depends how much you need, How much your house was and the market in your area. Also if you can afford increased mortgage payments with the rates up anyway.

Do most people pay for extensions via remortgaging?
Most people I know who have put in extensions did so within the first year of buying their houses, as we did too. I assume like us they used savings or equity from their previous house sale.

We bought in Feb 22 and HPI alone tells us that the value has increased by £50k. We've made expensive improvements (heating /electrics etc) which will have also increased the value but no idea by how much, probably less than we've paid.

As others have said I don't think it was ever the norm to extend based on house price increases within 5yrs. The cost of any build/ repairs are so expensive at the moment and on top of that the lending rates as you've said make it even more expensive.

Think it depends on area?

I bought June 22, and the neighbour just completed for 70k more than I paid (cosmetically, their house was nicer but I have an extra bedroom) and next door then other side has one bedroom bedroom less and equally in need of a face lift, they revalued for mortgage last week and its 30k more than I paid.

I don't think everyone overpaid in the last few years, perhaps more the people who got carried away in best and final?

Totally depends, this is way too general.
It depends on the house price, area, equity, type of work done on the house etc.