Mortgage help

[EllieRay]

We want to borrow 20k more on the mortgage so we can do an extension.

We got turned down based on outgoings too much for income but...last year we overpaid the mortgage by £24,000 when we were given some inheritance and at the time didn't think we needed to extend.

I can't understand how when financial circumstances haven't changed we were offered the £24,000 more on the first place but now they won't lend anymore back out?

Would we have any luck going to a broker for help?

We have an early repayment charge of £7000 if we change mortgage so really can't afford that.

I think a broker would only be able to help if you remortgage, which isn't feasible with a repayment penalty. Who turned you down? If you just called the bank and spoke to a call centre then request a face to face with your bank and ask them to explain why as if you are in a fixed term the repayments would still be the same?

It's worth checking your mortgage agreement carefully - once you've made an overpayment, some places let you make up to an equivalent underpayment penalty-free. I know people who do this as a rainy day fund, knowing if they lost their job etc then they have essentially banked some mortgage payments. Some banks don't let you do this at all, and others say it has to be within the same FY as the overpayment, so check carefully.

A good broker will at least talk your situation through with you and find the best way forward. Something will be possible I'm sure!

Thank you, we have a good broker but I actually hasn't even thought of getting in touch... we just went straight to the bank, but will definitely give him a call and see what he says!