Funding house extension

[morethanmama]

Just starting to get quotes in for ours and coming to terms with the fact we are about £50k short! . It seems we need 100k at least.
Please can I ask how others fund largish extensions? Do you go back to mortgage co? Our ltv is about 75/25. We prob have enough in cash to get the shell up but not to fit out. Really interested to hear how others are doing this. It's such a colossal sum you can't all have it in cash!

You can usually borrow up to 85% on a remortgage, is the extra ten percent enough?

We are planning one next year and will remortgage (plus we have an endowment maturing), we'll borrow up to 85% which will push the mortgage rate up slightly. but we should create at least 50k of equity (hopefully more like 80k) when it's done so we can remortgage again onto a lower rate afterwards.

This is for a two storey extension and a loft conversion, so £££.

Still cheaper than moving house though.

We remortgaged - we went to London and Country on the recommendation of MNetters and it was brilliant. They found us a great rate for our massive remortgage (two storey and loft conversion, so cost about £110k). We will end up with a LTV of around 75 to 25 and got an interest rate around 2.4, which is pretty damn good. Better than we had before! Only slight problem we found was the length of time it took to go through and the mortgage company have put a retention on the mortgage funds until the loft conversion is completed (this was because we had started work before the valuation and the surveyor basically put that on as a condition because he was a shit). We can borrow from the in laws to complete and then the funds will be released when the surveyor has been round again, but otherwise would have been a bit of a spanner!

We will remortgage again in two years and should have a much better LTV rate by then. Cheaper than moving, and we couldn't afford to buy what we want anyway, not here at any rate.

Not wishing to rain on anybody's plans but just wanted to add a note of caution. We recently applied for an additional amount of funds to do a very small extension and our current LTV is 25% and 10 years remaining. However, when we applied to the bank LTV only played a very tiny part (if any) in the underwriting procedure and the amount they would lend was based purely on monthly affordability against income/outgoings. When I asked about the low LTV on the house, they said they don't lend against this anymore as 'it would be bad lending and bad press for them to have to evict a family from their house even though they would more than recoup the loan amount". The same applies if you are trying to increase the term to squeeze a bit more out if them. In the end we ended up with half of what we wanted but can work with that (just). Things have definitely changed since I worked in banking and even in the last couple of years when we last approached them about moving, they are very cautious. Sorry that was long.

We are nearing the end of a 130k extension. We, over 7 years managed to save 80k and the rest is on 0% credit cards.

Thankyou everyone. That's what I feared really - think we are going to try and get shell up and work on obtaining smaller amounts of money from their. The quotes are eye watering though....