House extension mortgage

Most homeowners need funding for a house extension and obtaining a separate house extension mortgage is one way of obtaining the funding required. An alternative to having a separate house extension mortgage is to take out some equity from the main dwelling. It is now much harder to obtain a home extension mortgage as most lenders now require a higher level of equity to be retained within the main house.

Some home owners do not require a house extension mortgage as they are able to liquidate other assets or savings to fund the home extension and this is becoming far more common due to the financial restrictions and extra controls that the lenders are now placing on any new house extension mortgages.

One of the major controls when obtaining a house extension mortgage is the interim release of the monies to the home extension builder. Many mortgage lenders require the payments to be verified for work done on site by one of their surveyors which again adds to the overall cost of funding. Very few house extension mortgages will simply dump all the money upfront into a homeowners account before the works are completed and without verification.