Mortgage Retention Question!

allywag

Hi all,

I'm buying a house that needs various essential works completed on it. Our mortgage provider (Abbey) have imposed a £10,000 retention. I anticipated this and it's a fair amount.

My question is; are my repayments based on the amount I initially borrow, or on the total amount I will be borrowing once the work is done and the retention is released?

Also, is the LTV calculated on the amount I initially borrow or the amount I initially borrow plus the retention?

Thanks, Alex.

Let_Us_See

I am continuously surprised by people posting on the forum when the answer to there query is pretty straightforward.

Simply phone the Abbey and ask? That way you receive an actual answer rather than forum conjecture.

TEDDYRUKSPIN

Let_Us_See wrote: »

I am continuously surprised by people posting on the forum when the answer to there query is pretty straightforward.

Simply phone the Abbey and ask? That way you receive an actual answer rather than forum conjecture.

Brilliant answer. Phone abbey and you will get your answer.

opinions4u

allywag wrote: »

My question is; are my repayments based on the amount I initially borrow, or on the total amount I will be borrowing once the work is done and the retention is released?

Your repayments will be based on the amount initially borrowed. They will then increase as and when the retention is released.

Also, is the LTV calculated on the amount I initially borrow or the amount I initially borrow plus the retention?

You will have two valuation figures. One for current condition, and one for when the required work has been completed.

So your LTV may be £80k on £90k = 89% prior to work being done and £90k on £100k = 90% after the work has been done.

allywag

Dear opinions4u
Thanks for answering the question. Very helpful.
Alex.