Planning permission, should i tell mortgage company

[surrey_36]

Hello to anyone that might be able to help -I hope ive posted thi in the right are wasnt sure.

I live in a one bed house with my 13 month old baby and need more space. Im told that I have very good potential to extend to a 2 bedroom house but dont have the funds to do it and a poor credit history will not enable me to take a loan out. will my mortgage company (ge money) consider a further advance with a poor credit history and a recent payment arrangement due to hardship. Im guessing they wont even consider it but just exhausting all my options! Any suggestions welcome

[surrey_36]

bump

[Lea_HTH]

No one here can tell you whether or not GE Money will lend you more money - you'll need to ask them.

 

What I can do is advise you against borrowing more money when you a) have a poor credit history, b) have a mortgagee that is sub-prime, c) already have a payment plan in place and d) possibly can't afford the mortgage you already have (hardship as referred to by you). It is entirely illogical for someone in your position to consider borrowing more money. Think about other, more practical, and free or largely cost-free things to do to maximise the space in your home. Convert the sitting room to a bedroom for yourself, e.g. by buying a good study sofa bed to replace your current sofa, install fitted wardrobes into any available space, use the bedroom as the child's room. Concentrate on fixing your credit rating so that in four or five years time you will be in a position to borrow from a high street lender instead.

 

Contrary to popular opinion, babies do not need rooms of their own - but by using the sitting room as your bedroom, you free up the bedroom for the child as he/she grows. It may not be perfect, but a one bed flat/house for two people is perfectly adequate, particularly when affordability is an issue.

[surrey_36]

Hi Lea thats kind of you to offer me this advice and I want to say thankyou for your time. Thank fully out of the hardship now and not considering going back to that place anytime soon by taking out any type of loan that I cannot afford. I have utilised the space of my one bed place by doing much of the things you have mentioned already. Thank you anyway for the pointers

[johnvernon74]

I'd get my credit sorted out before borrowing anymore. Its unlikely infact impossible that anyone will lend money in these circumstances. Rebuilt your credit rating them change over to a better lender.

[surrey_36]

I have just been granted planning permission to extend my small 1 bed house into a 3 bed house. amzing news for us as we have 2 babies and are very confined space! Me and partner are looking at taking out a 25k loan to go ahead with the works in a couple of months.

I have a mortgage with GE (interest only) but due to problems a couple of years back now have a poor credit rating.

I have been thinking about contacting GE Money and telling them the situation, saying we have been granted planning permission, would this make them consider a possible furtehr advance on the house do you think? I currently owe £156k and the house as it is is worth £185k, with extension probably about £230k (at a guess!) also there is the option of adding my partner to the mortgage who has a good credit rtating.

The question is do i tell them about the planning permission or not bother?

thank you for any advice !

[raydetinu]

I would think it would be a good idea to put your partner on the deeds anyway as they have a vested interest?

Also a good idea to tell mortgage company any way as they have an interest in the property; their security would go up!

I also expect their interest rates would be lower than any loan you might take out; if you are using house as collateral for loan you will have to tell them anyway!

25k for a two bedroom extension sounds cheap, have you had it costed out yet.

[theoldrouge]

only problem with adding partner to the mortgage is that this will create a financial link on both your credit reports, so partners credit will impact yours and visa versa

[raydetinu]

Theres commitment for you!

[surrey_36]

thats a good point,t hank you

only problem with adding partner to the mortgage is that this will create a financial link on both your credit reports, so partners credit will impact yours and visa versa