Re mortgaging might not be that easy, some banks give 90% on a purchase but only up to 80% on a refinance so unless you add a lot of value with that extension you may not meet criteria. Hindsight is marvellous but it would have been better to include the extension cost with the initial purchase price and borrow 90% of that, the extra would then have been retained by the lender until the work was completed.
You're basically looking for a 100% mortgage or even more given the likely cost of the huge extension you're putting in. That isn't going to fly at all. Wait and save is the only real option.
I don't think you understand how it all works. The mortgage has to be based on the value of the house if it's to be a mortgage (the bank gets the house if you default) - you're looking (if you want to re-mortgage) to get a lot more than the house is currently worth (unless you bought it at a huge discount) so you are going for more than 100% of the value of the house.Yep, 1500sq.ft, the existing house is only 600sq.ft, and we are aware of the costs.
The thing is we are not looking for 100% of the extension cost, merely 90% in line with our current mortgage, which we would have the capacity to re-pay at mortgage interest rates.
Ignoring the 'can we afford it' and 'save' debates, the big question I am asking is do the new regulations impact upon our situation (I do appreciate Monbretia's insight that some lenders will only provide 80% on a re-finance), but from speaking to the FA in the bank, we orginally only needed 10% of the extension cost, which since yesterday could now be 20%?
I don't think you understand how it all works.
The mortgage has to be based on the value of the house if it's to be a mortgage (the bank gets the house if you default) - you're looking (if you want to re-mortgage) to get a lot more than the house is currently worth (unless you bought it at a huge discount) so you are going for more than 100% of the value of the house.
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