do i have to say whats the moneys for ???

cookie1003

hi,
i'm about to go & get a remortgage on my house which my mortgage is about to end in a year or so with £10,000 owing (which i have in an isa).
my house is worth about £100,000 & i only want about £50-60,000.
the money is to finish off my newbuilt house which i have built next door to me.
would i be ok saying the money is for that or am i better saying the money is to do work on my existing house (new kitchen etc).
or do i need to give a reason what the money is for ???
thanks:beer:

Thrugelmir

There's a high possibility that there'll need a clear explanation of remortgaging for such an amount.

Your house is only worth £100k. So a sum of £50k \ £60k seems disporortionate for work on it.

You may need to find an alternative source of funding. Though will be at a far higher cost.

opinions4u

If they ask you the question, then you have to give an honest answer.

And they will ask you the question.

They may also ask you to provide estimates and quotations.

_Andy_

cookie1003 wrote: »

hi,
i'm about to go & get a remortgage on my house which my mortgage is about to end in a year or so with £10,000 owing (which i have in an isa).
my house is worth about £100,000 & i only want about £50-60,000.
the money is to finish off my newbuilt house which i have built next door to me.
would i be ok saying the money is for that or am i better saying the money is to do work on my existing house (new kitchen etc).
or do i need to give a reason what the money is for ???
thanks:beer:

1) Yes you do need to.
2) Tell them what is actually for - anything else is fraud.

themull1

i would make something up - new kitchen, bathroom etc.

_Andy_

themull1 wrote: »

i would make something up - new kitchen, bathroom etc.

So you'd condone and promote fraud then? Great attitude.

opinions4u

themull1 wrote: »

i would make something up - new kitchen, bathroom etc.

Why?

Do you want a fraud marker against your name the next time you apply?

The genuine purpose of loan is perfectly legitimate. It will meet the lending criteria of many providers.

cookie1003

this is why i asked,
it seems crazy that i have never defaulted on a payment for nearly 24 years & i have a great credit rating & my house next door to me is nearly built which i should be able to get done without the borrowing but i want to fit underfloor heating , nice tiled floor & a nice kitchen this along with decent double glazing etc to finish the house off & i just need the funds. surely as long as i can make the payments i should be able to do with the money what i want. but maybe i must be a bit naive.
when people do remortgage their house what is it usually for ?
could i say i owe my mum some of the money or would that make it worse (she has lent me a few grand)

themull1

No, but its easier saying new bathroom than disneyland holiday.

_Andy_

cookie1003 wrote: »

this is why i asked,
it seems crazy that i have never defaulted on a payment for nearly 24 years & i have a great credit rating & my house next door to me is nearly built which i should be able to get done without the borrowing but i want to fit underfloor heating , nice tiled floor & a nice kitchen this along with decent double glazing etc to finish the house off & i just need the funds. surely as long as i can make the payments i should be able to do with the money what i want. but maybe i must be a bit naive.
when people do remortgage their house what is it usually for ?
could i say i owe my mum some of the money or would that make it worse (she has lent me a few grand)

Oh for gods sake - TELL THE TRUTH! No-one said you can't have the funds! What is so hard about NOT making a fraudulent application?

cookie1003

_Andy_ wrote: »

Oh for gods sake - TELL THE TRUTH! No-one said you can't have the funds! What is so hard about NOT making a fraudulent application?

christ calm down i'm only asking if ya didn't know thats what these forums are for.