Owning your own home

LTV on current deal is about 25% on 1.7% fixed for 2 years

To expand on the earlier answer. Partner just got a 2nd mortgage on her place to do an extension. The bank will go through the same affordability chats with you that they did for the first one, and they'll revalue the house (this may just mean they look on Google Maps to see if it's probably still there, they look at the Zoopla valuation).
Assuming they think there's enough headroom in the current valuation then they'll offer based on that. So it shouldn't really work out too differently to the first in terms of how it works, you'll just end up having two payments a month instead of one.

Fuck me solicitors really are useless aren't they.

Mine were good- but pricey.
Our family have used them (or rather their previous forms as now new partners) for a very long time.
I’d recommend, for sure.

This is, I think, a silly question, but if you don't ask...

Looking to carry out some major building works on our home (say £50k in total). We 'own' about 50% of the equity in the house. To pay for the works, we'd like to borrow against the house, probably pushing up our total borrowing to about 60/65% of the value of the house.

So, silly questions:

• I presume we're technically looking to remortgage? Is this all we need to be saying when we approach our lender? "We're looking to remortgage to pay for some building works"?!

• if approved, is it likely that the lender sends a wodge of cash to your nominated bank account, or are staggered payments more common?

I presume we're technically looking to remortgage? Is this all we need to be saying when we approach our lender? "We're looking to remortgage to pay for some building works"?!

Yep

if approved, is it likely that the lender sends a wodge of cash to your nominated bank account, or are staggered payments more common?

Wodge

(see post 4 up from here)

It's called further borrowing - it's allowed up to the maximum that your mortgage allows. So for example if that is 75% LTV then you've got 25% of the value of the house as potential borrowing.
It's all done in a lump sum.

It's also really really common and is exactly how a lot of people pay for house renovations.

Thanks @duncs and @Bainbridge!

Edit; double thanks @duncs, not sure how I missed that post!

Any difference between 'remortgaging' and 'further borrowing'? Presumably the latter might be quicker, as there's not another application process to go through (given that yes, we have a chunk of equity to eat into)?

It's quicker and you aren't remortgaging, you're technically taking out a side mortgage. When your mortgage term ends you roll it all into one.

Any difference between 'remortgaging' and 'further borrowing'?

There's an application either way. If you're still within your initial term (as my girlfriend is) then the only feasible option was to do the further borrowing.
I guess if she had been able to remortgage then there'd be other options.

Depending on your current repayments, interest rate etc then one may make more sense than the other (early repayment fees depending on whether you're in the initial term etc)

Lump sum usually.

Are you looking to remortgage anyway, or take out further borrowing and then tie the two together at a later date?

You'd be best to speak to your bank, it's something lots of people do.

They might need schedules of work etc, if you are proposing to structural work. (Putting their investment at risk).

It's called a 'Further Advance Mortgage' if through same bank usually, otherwise another bank would be looking at a 'Second Charge Mortgage'.
Also you shouldn't incur any solicitor fees for a further advance.

Will this mean finding a minimum 10% deposit to access the additional borrowing?

Probably not, depends on your current LTV. Likelihood is that you'll just be borrowing against the existing equity. e.g. you have a £300k property with £150k mortgage and that will go up to £300k property with £250k mortgage.

Second mortgage will probably be a worse rate than the first but is likely to be lower than the other options.

Any difference between 'remortgaging' and 'further borrowing'?

Remortgaging would technically involve paying off your existing mortgage so you may have some early repayment fees.

Thanks @Kurai @duncs and @aggi great advice and clarity. The current loan is £138k against £560k. We’ve only been in since July. They haven’t offered it yet, just guided me to Think 2nd mortgage.

Follow up question. I’m in the process of moving jobs to start in January. Is this a point going to negatively impact an application for
Further capital. The new job pays more.

Just looking at the HSBC for example, they require that you've had a mortgage with them for 6 months and you are thinking of borrow at least £10k, to qualify for further borrowing. As above, same bank = further advance, different bank = 2nd charge mortgage.

https://www.hsbc.co.uk/mortgages/existing-customers/borrow-more/

Any recommendations for bathroom builders/tilers?
We need to get our place ready to go on the market fairly soon.

Lacanche is the dream.

It is. And then I'm getting in the car, crossing the Channel and driving to Villeneuve near Mont St.Michel and I am going to spunk a ton of money on lovely French artisan tin lined copper cookware because frankly that is probably the only thing worthy of use on a Lacanche.

Are you writing this solely to get in the golf club thread?

spoiler: it's working

Victorian terraces are supposed to be draughty and cold

we have found a common ground to agree on!

fucking hate victorian houses, why cant I buy a house this size in london zone 3 for normal money thats modern built? These 100 or so year old properties are absolute maintenance magnets and they are cold and not energy efficient.

Oh I love them

ffs

coulda stopped at why cant i buy a house in zone 3 london for normal money.

my current issue is how most of them are barely 100sqm.

LFGSS -

Spunk multiple thousands of pounds on a custom bike? Lots of kudos and forum prestige.

Spend the same money on lifetime cooking appliance? Shame them.

This place....really. Fuck that thread.

edit: not aimed at you personally, just amused at general forum behaviour

Ha, yes when you put it that way.

To be fair, I think that thread is a fairly gentle piss take, with no real malice intended. And to be clear, I wasn't the one that quoted you in there!