Help with financing loft conversion

[TheRamblingRose]

Hi everyone, I could do with some input on this one.

I'd like to stay in our current house long term, which is a 3 bed terrace. It already had a kitchen extension when we moved in so downstairs is big but upstairs the 3 bedrooms are pretty tight. Kids are 5 and 2, so in a couple of years I'd like to get a loft conversion. I also need an office as I have started a business in the last year.

I know a lot of people finance a loft conversion through a mortgage, however because I don't have 2 years of receipts, we won't be able to count my income when our mortgage is up in September, so we'll just have to do a product transfer which is staying with the same lender for the same deal, where they don't look into your finances again and you can't borrow more.

Do we: fix for 5 years and find some other way to finance the loft? If so, what options are there? I think we'd need to borrow about £35k and would put some savings in

Or

Do we fix for 2 years (bit worried about that in current climate) by which point I'll have enough evidence of earnings and we can add it into a mortgage then?

Is it far cheaper to borrow as part of the mortgage?

Additional lending doesn’t have to take place when your changing your product / remortgaging your existing mortgage.
So Fix for what ever length of time you want and then take out additional lending when you can. It will have to be with the same mortgage company but you will get a different product with a separate interest rate.
Its a common thing to do.

I was just coming on to say the same thing. We did it for work that needs doing on our house and we have two mortgages, the main one and the additional borrowing.

Ah amazing, I had no idea! Would they revalue the property etc at that point in order to determine the amount they could lend?

That will depend on your lender, ltv and probably income.
They will probably apply a HPI calculation to your current valuation. Lots of lenders do this automatically each year.

I think the bank sent a surveyor to our house when we looking at borrowing more. DP dealt with it and I wasn't at home when the visit took place.