I have a motgage of £246k on a house valued at £400k. In June I spoke with my mortgage company (Accord) about the possiblity of an additional loan of £40k for an extension that would add £125k to the property value. I was told that the loan would be no problem as there is plenty of equity in the property. I therefore went ahead and am now on the verge of getting planning consent, I have also spent money in preperation for the new rooms.

Last week I spoke to the mortgage company to see if they would lend a little more than the £40k. To my amazement when they ran everything throught they said they would loan me noting extra at all, _base_d on their new affordability criteria. The additional cost is easily affordable but their computer said "no" and that's that. I can't get out of the mortgage as the redemption penalty is £11k! What's more havng used their new mortgage calulator I can tell that they would even have given me the mortgage I have now if the current criteria had applied in 2007. This is just illogical as we have not come close to struggling with the montly payments.

I now face getting a secured loan at a higher cost and greater risk to the mortgage lender. I can't think of an other options - are their any?