HMFC4ME Posted April 7, 2022 Share Posted April 7, 2022 Anyone added an extension to their home before, how did you finance it? As far as I'm led to believe (after speaking to my mortgage provider) banks won't lend on future value so I would need to fund an extension by other means. From the research I've done it may be bridging finance that I'm looking for, does that sound right? If that is the case does anyone have a recommended company for that type of thing? Quote Link to comment Share on other sites More sharing options...
heartsfc_fan Posted April 7, 2022 Share Posted April 7, 2022 You have a reasonable amount of equity you can usually borrow more. Speak to your bank about "additional borrowing". I did this in 2019 and put a family room extension on the back of the house. Essentially you are borrowing a "side mortgage" that runs alongside your main mortgage. Quote Link to comment Share on other sites More sharing options...
Craig_ Posted April 7, 2022 Share Posted April 7, 2022 Yep, you're right in that they value your house as it currently is. Though as mentioned above, you should be able to increase your loan-to-value up to 80-90%,but probably at the cost of a higher interest rate. Nit sure about bridging loans for this type of purpose, sounds like quite a dangerous thing to do, especially if the rates aren't fixed. Quote Link to comment Share on other sites More sharing options...
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