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Due to a few reasons, my mortgage when I bought was higher than I needed. Part of the money was used to buy a car and more for improvements. I don't think anyone asked what the money was for as my LTV was low and affordability was fine.
Not sure I'd actually tell the mortgage provided what it is for.
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Yes that's exactly what they'll do. They might ask if you are using any of the advance for a specific purpose and you'd just say home improvements. They then send the lot to your solicitor so you can buy the place and the 95pc you didn't need to buy the house on day one gets either sent to you as a cheque or you pay 40 quid and it's sent as a chaps transfer.
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Offset mortgage sounds perfect for that? Example:
- £500k house
- £100k mortgage
- £400k deposit
- £75k in the offset account until you're ready to do the works
You're only paying interest on £25k then but still have access to the £75k
- £500k house
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aggi
princeperch
frankenbike
@tbc
Thanks, that's helpful as ever.
So you can say to the mortgage provider, assuming option 1, "we want to borrow x from you, but 0.75x is actually for improvement works rather than the purchase" and they'll send you a cheque?