Extending mortgage for building work

[Earslaps]

Hopefully there's an easy answer to this as I'm clueless! I tried to speak to our current lender but gave up after 15 minutes on hold!

Our fixed mortgage term is up so we need to remortgage. We are hoping to extend the house in a couple of years. If we want to borrow more money for the extension, can we add it onto the new mortgage or would we need to completely remortgage again?

So say our mortgage was £100k, and we wanted to get a five year fixed term but borrow another £40k in two years, could we add that £40k on and then switch the whole £140k (less repayments) mortgage again three years later. Or would we need to cancel the five year mortgage (with potential repayment penalties ) and get a whole new mortgage?

I hope that makes sense- we've only ever switched mortgage once and that was moving home!!

Also, my parents are giving us a lump sum that we will use towards the extension. If we get that a year or so before we are ready to extend, could we pay some of that towards the mortgage but then draw it down again when we are ready? Presumably that would save a bit of interest?

I think what you’re referring to is a ‘further advance’. Have a google of that if you haven’t already. Obviously would only be allowable if you had enough equity in your property to keep you below the LTV your lender likes. I read they don’t like to go above 85%.

Thank you. I'll have a look (and make an appointment with the mortgage advisor!).

We won't go above 60% LTV (though may be slightly above that if they go by average price rises- prices in this area rise well above national average. I know mortgage lenders tend to undervalue for remortgaging) and would be well within affordability levels too.

Fingers crossed you will be ok then! Good luck

Nationwide seem to say that you can borrow more as long as you've had your loan at least 6 months. So that could work well.

I know they are mega stingy in valuations though- their valuation for remortgaging our last house was £350k. We actually ended up moving before remortgaging and sold for £420k!! That's a huge difference when you are looking at LTV ratios.

Yea the LTVs change so much even just for £10-20k so would be huge for that!

The rates*