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I presume we're technically looking to remortgage? Is this all we need to be saying when we approach our lender? "We're looking to remortgage to pay for some building works"?!
Yep
if approved, is it likely that the lender sends a wodge of cash to your nominated bank account, or are staggered payments more common?
Wodge
(see post 4 up from here)
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It's called further borrowing - it's allowed up to the maximum that your mortgage allows. So for example if that is 75% LTV then you've got 25% of the value of the house as potential borrowing.
It's all done in a lump sum.It's also really really common and is exactly how a lot of people pay for house renovations.
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Lump sum usually.
Are you looking to remortgage anyway, or take out further borrowing and then tie the two together at a later date?
You'd be best to speak to your bank, it's something lots of people do.
They might need schedules of work etc, if you are proposing to structural work. (Putting their investment at risk).
It's called a 'Further Advance Mortgage' if through same bank usually, otherwise another bank would be looking at a 'Second Charge Mortgage'.
Also you shouldn't incur any solicitor fees for a further advance.
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duncs
Bainbridge
Kurai
@allsop
This is, I think, a silly question, but if you don't ask...
Looking to carry out some major building works on our home (say £50k in total). We 'own' about 50% of the equity in the house. To pay for the works, we'd like to borrow against the house, probably pushing up our total borrowing to about 60/65% of the value of the house.
So, silly questions:
I presume we're technically looking to remortgage? Is this all we need to be saying when we approach our lender? "We're looking to remortgage to pay for some building works"?!
if approved, is it likely that the lender sends a wodge of cash to your nominated bank account, or are staggered payments more common?