Hi-- we are about to purchase a house (first time!) with a 25% deposit.
For various historical reasons the mortgage will be with Lloyds (we should have shopped around but thought it would be easier to stay with this, our current bank...! But there we are).
Anyway, our problem is this: we would like to maybe borrow more (additional borrowing?) in about 6-12 months to pay for an extension to the house.
During this time it is possible that my partner's income will rise quite a bit (? not sure how much-- release of some things he's been developing... failing that going full-time at his current workplace- probable increase in income of 20%)
It is possible that the house market will stay stable or slightly increase where we are (!) but anyway, I think we can't *rely* on it going up.
With Lloyds they say they will only go to 80 LTV (so that's 5% more than we're currently getting (75% LTV) and in this case unlikely to be enough to do the work we're thinking of.
We were planning on fixing the mortgage for 5 years.
I guess the questions are:
* in the above scenario is it better not to fix for 5 years but maybe have a shorter term/ different type of mortgage that will be more easy to negotiate in a few months' time, possibly with a different lender?
* how easy is it in the current financial climate to get additional lending
* does anyone know if Lloyds are at all flexible on that 80% LTV figure if income has increased?
Any advice appreciated. We'll have to sign on the dotted line this week some time probably, so need to make our minds up quickly!
thanks in advance!
For various historical reasons the mortgage will be with Lloyds (we should have shopped around but thought it would be easier to stay with this, our current bank...! But there we are).
Anyway, our problem is this: we would like to maybe borrow more (additional borrowing?) in about 6-12 months to pay for an extension to the house.
During this time it is possible that my partner's income will rise quite a bit (? not sure how much-- release of some things he's been developing... failing that going full-time at his current workplace- probable increase in income of 20%)
It is possible that the house market will stay stable or slightly increase where we are (!) but anyway, I think we can't *rely* on it going up.
With Lloyds they say they will only go to 80 LTV (so that's 5% more than we're currently getting (75% LTV) and in this case unlikely to be enough to do the work we're thinking of.
We were planning on fixing the mortgage for 5 years.
I guess the questions are:
* in the above scenario is it better not to fix for 5 years but maybe have a shorter term/ different type of mortgage that will be more easy to negotiate in a few months' time, possibly with a different lender?
* how easy is it in the current financial climate to get additional lending
* does anyone know if Lloyds are at all flexible on that 80% LTV figure if income has increased?
Any advice appreciated. We'll have to sign on the dotted line this week some time probably, so need to make our minds up quickly!
thanks in advance!