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mortgage advance question
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davybrown
Posts: 3 Newbie
Hi,
I've just been granted an advance of £50k on my mortgage (property worth £170k, current mortgage £48k) to use for home improvements and buying into a buy to let flat - mortgage company know this bit.
I've now been offered a more lucrative deal of developing an old property which would use all of the 50K. Trouble is, the small print says they won't lend for commercial ventures (which I suppose this is really)
My accountant says loads of people use mortgage advances for business activities they haven't declared and I shouldn't worry, as all they are interested in is that the payments are met every month and that the capital is repaid at the end of the term (which they both will be).
Could they ever find out and what would happen if they did ?
I've just been granted an advance of £50k on my mortgage (property worth £170k, current mortgage £48k) to use for home improvements and buying into a buy to let flat - mortgage company know this bit.
I've now been offered a more lucrative deal of developing an old property which would use all of the 50K. Trouble is, the small print says they won't lend for commercial ventures (which I suppose this is really)
My accountant says loads of people use mortgage advances for business activities they haven't declared and I shouldn't worry, as all they are interested in is that the payments are met every month and that the capital is repaid at the end of the term (which they both will be).
Could they ever find out and what would happen if they did ?
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Comments
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Great - your accountant is suggesting fraud. Superb.0
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this website now recognises IP addresses and anything like this immediately alerts the FSA, the police, the government, Batman and the A TEAM. Be careful Dave!Hi, we’ve had to remove your signature. If you’re not sure why please read the forum rules or email the forum team if you’re still unsure - MSE ForumTeam0
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What a strange rule that they won't lend for commercial ventures.
You can spend the £50k on Pokemon and cheese if you want, but not on a business? Bizarre.0 -
Surely there can't be much difference from using a portion of the funds for buy to let, or all of the funds for a redevelopment project ?
At the end of the day, the payment WILL be met and the advance WILL be repaid.
Or it may be back to the original plan they approve of !0 -
By the way, I haven't accepted any money from them yet, things are simply at the application stage.0
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Why not phone them and ask them?0
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