Home improvement and remortgage

[some1gr8]

Hi Guys,

I hv outstanding mortgage of 142k with 34 yrs remaining with BOI. (Monthly payment of 550 aaprox.) I am looking for 50k house improvement loan.

Lets assume if house is worth 190k, and I hv secure job,

1) what are chances of success,
2) Is it possible to add 50k to existing mortgage or would there be different interest rates and terms for 50k loan.

Thanks

 

[hippy1975]

Based on the figures you've given, that would mean you'd have a 100% mortgage, or slightly over that (192 mtg vs 190 value)

What would the expected increase in value to the house be when the work is done? You may be able to talk to the bank along those lines

 

[some1gr8]

Thanks hippy1975,

I think extension will add 35k so it should be worth 225k+,

 

[tallpaul]

2) Is it possible to add 50k to existing mortgage or would there be different interest rates and terms for 50k loan.

Thanks

I think this is the likely scenario. When we approached our bank a couple of years ago to suss out a loan for a house extension, we were told that it would have to be a seperate loan and at a significantly higher interest rate. Luckily we had sufficient savings not to have to pay the exorbitant (compared to a tracker) interest rate.