Hello Mumsnet,
We are planning a large extension (2x the size of the house) and found ourselves in a bit of a Catch 22 situation:
- Bank will cap the further advance (2nd mortgage) at 85% LTV of the EXISTING house which is actually quite a bit below what we could borrow for a mortgage under normal cirumstances (we are at ~66% LTV right now). Even with personal loans, we are falling short and actually we would obviously prefer a mortgage anyway.
- We cannot remortgage with another lender at 90%+ LTV (partly bcs there aren't many deals due to coronavirus and the high cost of ones that are there) and partly bcs we are 2 yrs into a 5-year deal and would incur a pretty steep penalty in cash terms (would rather spend that on the house).
So I have two questions:
- is it possible to have YET ANOTHER (3rd) mortgage advance once the extension is built? (as we have quite a bit of an upside possible)
and
-
at what stage - the earliest - would Bank consider the new structure for valuation purposes? Wind and watertight? or has to have walls plastered? any fittings in?
-
does anyone have any alternative ideas how we could finance this?
Thank you!
P.S. My mortgage broker is silent on the 3 points above.