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Mortgage advice

LiveNowDieLater Avatar
6y, 9m agoPosted 6 years, 9 months ago
Hi all,
I have been considering building an extension on my house, but there is currently not enough equity to do this. Does anyone know if its possible to increase the mortgage based on the estimated value of the house after the extension? I'm with Northern Rock.
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LiveNowDieLater Avatar
6y, 9m agoPosted 6 years, 9 months ago
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#1
hi

you used to be able to do this with northern rock hence the reason they got into trouble. doubt any bank nor building society will do this as they only lend 90-95% of the value as it stands when your looking for money
#2
Thanks for the response, I had a feeling that was the case! Might just have to wait a few years...!!
#3
LiveNowDieLater
Thanks for the response, I had a feeling that was the case! Might just have to wait a few years...!!


what about a personal loan would depend on how much you were looking for, the other thing is that you could pay to get a valuation yourself when i remortgaged they valued my house £30k above what i thought and i deal with this sort of thing so i was really surprised
#4
LiveNowDieLater;7788942
Thanks for the response, I had a feeling that was the case! Might just have to wait a few years...!!

You may still not be able to do it in a couple of years...if you remain with Nothern Rock.I have been a customer for over 20yrs, never missed a mortgage payment....received a letter recently explaining that the bank (we as tax payers own) has split into two seperate banks...
With the upshot being that the part of the bank I am now in (along with 90% of mortgage customers) will not provide additional lending to me/us in future.
So when current fixed rate deal comes to an end will need to look elsewhere or remain on a variable.
So call them up and find out if your in the same boat, or one of the lucky 10%.
#5
what about a remorgage? if youve paid so much back that might be enough to build your extension
banned#6
if your house has not enough equity in its current state then noone is going to add to your mortgage
#7
i am with northern rock to and in october our fixed rate ended and we are currently on variable which at the moment isnt an issue as the rates are so low, i questioned them as to when they will be offering fixed rates again and they said when the interest rates start going back up but they are defo not lending any extra cash at the moment as they are just concerntrating on getting money in to clear off debt, i hope they do offer fixed rates as i really like them as a mortgage company
#8
We are thinking about this as well. What we intend to do is remortgage at x amount and take the rest as a high personal loan, extended over it's maximum period. We will make sure the mortgage doesn't have a long tie-in period then remortgage again soon after the extension is done. This way you can remortgage based on the new value of the house and incorporate the personal loan into the mortgage.
#9
Reddwarfposse5
We are thinking about this as well. What we intend to do is remortgage at x amount and take the rest as a high personal loan, extended over it's maximum period. We will make sure the mortgage doesn't have a long tie-in period then remortgage again soon after the extension is done. This way you can remortgage based on the new value of the house and incorporate the personal loan into the mortgage.


This is an option I thought about, only a slight gamble on the houses value after the extension...?


Thanks to everyone for the responses, I think i've now managed to convince the wife we need to wait at least a year, till we've cleared a different personal loan then have another look at our options.

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