What mortgage amount to ask for?

[2Clueless]

Hi all,
Am interested in an old bungalow that has just come up for sale nearby. Asking price is 185k. House has been happily lived in by different tenants but has a G BER rating! I have savings of 140k but would love to add an extension with a stairs (bedroom & bathroom) and obv improve the BER. I’m a FTB, single and 43. My salary is 64k. Also, my car just scrapped the NCT so will have to replace VERY soon. I’m thinking I should ask for a mortgage of 150 over 15 years. I know I haven’t even bid on it yet but would love some feedback re potential mortgage application. Thanks

 

[RedOnion]

Is your question how much do you need, or how much would you get approval for?

If it's the first, you need to get some idea of what a refurb / extension would cost. Nobody can answer that with the info provided.

If it's the latter, on info provided you'd have no problem getting approval for 150k (or indeed more).

 

[skrooge]

A couple of thoughts:

Drawing down as much as you can now will give you certainty of knowing what funds you have. A further drawdown would probably require a second application and there are no guarantees they will approve.

Not sure if the current situation but in the past top-up/renovation mortgage rates were higher than standard Mortgages. You've to way up the extra initiali cost of drawing down early versus potentially higher rates with additional top up.

If you go with a bank that offers %cashback it makes sense to borrow as much as you can - nothing to stop you paying it straight back and getting a larger cashback

Don't discount a longer term mortgage. You can always aim to pay it off faster than contractually stated. It gives you greater flexibility should it be needed down the line.

Getting it all in one go (and for as long as possible) would give you the most flexibility but probably worth finding out how much the work you want done would actually cost... Room to improve is the thing of nightmares.