Mortgages for Extensions
Our Mortgage Service - Raising finance for an extension
Special features of what we offer include:
- Advice on raising capital to build an extension on your home or on a second property
- Whole of market service - we work with a wide range of UK lenders
- Access to leading market mortgage rates
- Access to exclusive loan deals not available on high street
- Fast turnaround - speak to us today if you need to move quickly
- We have lenders who will take into account previous defaults and missed payments
To investigate your mortgage options if you are considering an extension or other building project on your home call our mortgage team on 0117 313 7780 or fill in our call back form.
"The essence of the Fair Mortgages service is professional independent mortgage and protection advice brought to you by a team of specialist advisers and experienced administration support.
As your mortgage is such an important transaction, good advice is imperative.
Mortgages for Extensions
Funding an extension with a mortgage can be a cost-effective means of financing home improvements. One of the most commonly-used options for funding a large home improvement project like an extension is by increasing the existing mortgage on your property, if you have equity in your home that allows for this.
This may be the case if you have owned your property for several years and it has increased in value since the date of purchase. Bear in mind that this type of mortgage, also known as a further advance, is likely to include its own set up fees and charges, so make sure you set aside enough money in your extension budget to pay them.
It can often be fairly straightforward to fund your home extension via your existing mortgage. To do this you will need to approach your mortgage lender and ask them for additional borrowing, also known as a further advance on your mortgage.
Do be aware that, even if your current mortgage is a low cost or discount rate, your additional borrowing us likely to be charged at a different rate. You will usually be required to borrow at the lender’s standard variable rate (SVR)
Mortgages for extensions – points to consider
- You will usually be limited as to the total amount you can borrow. This will generally add up to about 90% of the value of your home, when your current borrowing and additional borrowing for the extension are added together.
- When deciding whether or not to offer you additional borrowing, your mortgage lender will take into account the current value of your property, the amount of equity you hold in the property, and your current financial situation including income and outgoings.
- Depending on your mortgage lender’s terms and conditions for additional borrowing, you may be able to repay your additional borrowing in a flexible way to suit you – for example, you could opt to pay off the additional money over a shorter term than your mortgage, or you could arrange to consolidate your additional payments and your exiting mortgage repayments into one convenient monthly repayment.
- Remember that additional mortgage borrowing for an extension may require you to pay additional costs such as arrangement and admin fees.
If you are unsure about what mortgage product is suitable for you click here » for a callback.