With the recent news of house inflation, a credit crunch and restricted lending, it is little wonder that more people are looking to stay at their current property for longer and develop what they already own. Finance can be raised by way of a mortgage for extensions, which is basically an additional credit facility topping up an existing mortgage, used for the purposes of home improvements.
With the recent news of house inflation, a credit crunch and restricted lending, it is little wonder that more people are looking to stay at their current property for longer and develop what they already own. Finance can be raised by way of a mortgage for extensions, which is basically an additional credit facility topping up an existing mortgage, used for the purposes of home improvements.
The vast majority of UK lenders allow these mortgages given that an extension can add significant value onto an existing property. The recent announcements by the UK Government, relaxing planning permissions for further home development, may cause an increase in this type of borrowing.
Existing homeowners can re-mortgage their existing property and capital raise an additional amount, for use to pay for the extension. The extension can add an additional room, a downstairs bathroom or toilet, a garage or some people are actually building out to extend the size of their kitchen and dining rooms.
