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Original poster

Should I borrow £40k for an extension?

36 replies

Careermummy · 16/05/2025 01:10

Hi, I am 40 years old and am considering borrowing £40k extra on my mortgage to add a smallish extension on the back of my house It would put my mortgage at £186k. I earn £60k and it would take my payments from around £700 to £900 PCM.

I live in a townhouse and all of my neighbours have extended as we all feel the ground floors to small. I've recently decided this is my forever house so am thinking I should maximise the space. The upstairs is great and the area is amazing.

My concerns are increasing my mortgage so much when it's just me on the mortgage & also having £200 less a month.

What would you do in my situation? Thanks x

OP posts:
cannynotsay · 16/05/2025 01:12

this Is a big no from me

MidnightPatrol · 16/05/2025 01:12

How confident are you it will cost £40k all in, as that seems on the low side.

Bjorkdidit · 16/05/2025 03:20

Can you afford the extra £200 pm?

What have you been doing with that money up to now and is it worth having to stop to repay a larger mortgage?

If you've been saving it, you won't be able to save as much, are you OK with this?

Do you have any savings? If not, does that mean you can't afford to increase your mortgage because if you had £200 pm spare, you'd have savings, because you have money leftover to save.

Or if you've been spending it, you'll need to cut something out. Which brings you back to the first question, what are you going to cut out to free up £200 pm to repay a larger mortgage?

Or will you be able to increase your income to pay it that way?

overtothere · 16/05/2025 03:31

Extensions are around 4k per metre plus fees, so it depends on what the space would be used for and whether or not you can comfortably afford that. You've got your architect, structural engineer, council fees, skip hire, decor, fixing the landscaping after, so it's a lot to get from 40k. Depending on the size of your house, you're looking at gaining a few feet across the back, or one small room, is it worth it?

caringcarer · 16/05/2025 03:36

Honestly I wouldn't ATM. I think RR is going to tank the economy in next couple of years. I've noticed lots of companies cutting back as people retire they are not replacing staff. Some companies are making redundancies. Even the civil service is letting people go. I'd wait a couple more years and save up to give yourself a cushion if you are on your own.

DrPrunesqualer · 16/05/2025 03:43

Do you have a floor plan
Just to see if it’s worth it ( financially )

Original poster
Careermummy · 16/05/2025 05:56

Thanks for your responses. Responding to a few questions:

  • I currently have zero debt apart from my mortgage so my left over to save or big purchases is £1,100 a month. I do want to buy a new car at some point though
  • I have 3 months wages saved and working towards 6
  • The room is 4x3 and will be used as a dining area as my kitchen diner is small
  • £40k is with a contingency, I am in the north of U.K. so that probably is why it seems cheap. The builder has amazing reviews online and just did another of my neighbours and they recommend them.
  • I would be cutting back on saving more then anything
  • I do also live with my partner who doesn't think it's worth it and won't pay anything towards it as he says it's going towards my house which I respect. I don't want to rely on his rent as I am divorced so am realistic and know he might not be around forever.
  • I dont think any job is truely safe these days. I have been with my company 12 years so if I did get laid off hopefully I would get a decent pay out. If I got 3 months + my existing savings as they are that gives me 6 months salary. My company is a global company employing 28k people and in a good position atm.
OP posts:
mrschocolatte · 16/05/2025 06:06

I would probably do it. It sounds like this is affordable for you. It should increase the value of your home if you ever decide to sell. But if it’s your forever home you will be living there an awfully long time and it sounds like this extension will improve the quality of your living experience. So go for it and enjoy the extra space! I did something similar and have never regretted it. It changed the way I live for the better. Good luck and enjoy if you decide to go do it!

springintoaction321 · 16/05/2025 06:12

I agree with Mrschocolatte - also if you've been in your job 12 years in would seem unlikely they will let you go in the near future.

We took extra out on our mortgage when moving, as the house needed a new boiler, new doors and windows, new kitchen and better roof! It was definitely worth it to get everything done within the first year. tbf our mortage wasn't a large amount per month though.

Cantabulous · 16/05/2025 08:54

I did similar 15 years ago and have no regrets at all. How you live day to day is so important. If it’s your forever home then it’s a no- brainer really. My one concern is that £40k quote though. Have you had others? The builder may be lowballing you

BangersAndGnash · 16/05/2025 09:04

What do you need the extra space for? What are you prevented from doing due to the current size?

Honestly, it sounds like quite a big mortgage to take on (in total) at 40 when you need to avoid putting yourself in a position of having to work longer when you feel ready to retire.

What shape is your pension in? You need money to live on between stopping work and state pension kick in.

Have you got critical illness cover?

Two of you in a town house sounds ok, do you have Dc living with you / staying?

TheMumEdit · 16/05/2025 09:07

It seems feasible and it’s your forever home. Go for it. At some point I’d look to overpay into your mortgage though.

Newgirls · 16/05/2025 09:08

I would. Worst case scenario you increase value of house and sell it. No brainer for me.

BeardOToots · 16/05/2025 09:12

I’d go for it. It will add value to your house and provide a nicer living space. Could you extend the term of the mortgage to make the monthlies more manageable?

CubanTody · 16/05/2025 09:39

If it will genuinely only cost £40k then it sounds like a good idea. I'm a bit dubious about the cost though as I'm also in the north of England and was considering an extension but we gave up and decided to renovate/remodel instead as the quotes were astronomical.

Bjorkdidit · 16/05/2025 09:48

If it's small and doesn't include expensive fittings or complications like sloping ground, re-routing drains etc, then it might be that amount.

AirborneElephant · 16/05/2025 12:03

I would do it if you want to live there long term. If you lose your partners rent you could always get a lodger in temporarily if required.

if your partner is playing the not my house card (which is fair), I assume you have a cohabitation agreement? If not the this would be a good trigger to get one in place.

AyeRight78 · 16/05/2025 14:29

Sounds like a great idea. We spent £50k on an extension 5 years ago and it transformed how we use the downstairs space. We actually used cash for that but a couple of years later we borrowed £40k from equity to build a huge garden office and replace the kitchen. Increased the mortgage although it was around £150 a month. Best money we ever spent. We could have moved house to get what we needed but stamp duty alone would have been about the same as it cost to build the office and replace the kitchen. Our house is now perfect.
I always find it strange how against people are on these threads about leveraging up the mortgage on an existing house but wouldn’t think twice about someone moving house when the costs involved are likely so much more.

testest · 16/05/2025 16:17

I would.
i spent around £80k on a back ground floor plus side first floor extension about 12 years ago. It’s made a huge difference to have more space for kitchen/diner/reception rooms.

its a bit of upheaval but ultimately worth it, just check your quote includes everything (all electric/plumbing/plastering, not just brickwork).

FloppySarnie · 16/05/2025 16:24

It’s all about if it’s affordable for you, and it certainly seems to be from what you describe.

Fourmagpies · 16/05/2025 16:45

I would and we did, several years ago, though it is was a bigger sum and a larger reconfigure and extension. I love the additional space. You sound like you've thought it through and are as financially secure as any of us can hope to me at the moment.

Snickersnack1 · 16/05/2025 16:52

I’m in a situation similar to you. similar income and mortgage. I’d do it!

JustGotToKeepOnKeepingOn · 16/05/2025 17:22

Go for it! I did it and it’s so fabulous having extra living space. I love it! Everyone comes to mine now as I’ve got the biggest living room. This is your forever home, you can afford it now and as you’re likely to get pay rises over the coming years you know you’ll be able to continue to afford it. I’ve never regretted my extension and I’m sure you won’t either.

shortsaint · 16/05/2025 20:26

We did the same 15 years ago and it’s now all paid off. Not one regret. We could have moved but that would have been way more expensive and doing this made us stay comfortably in the house. Makes a huge difference - do it!

DinaofCloud9 · 17/05/2025 17:54

Yes I would do it.