Releasing Equity during re-mortgage

JQ.

I've seen a few threads where people have not been allowed to release extra equity when re-mortgaging with existing lenders.

We're currently with First Direct and will be re-mortgaging with them in about 6 months and we'd probably like to release some equity, but still leaving 75% LTV. We probably won't do anything with the money in the short term and keep it in the savings account offset against the mortgage, but we'd like to have ready access to the money for future investments.

There's a thread on here where someone was refused as they'd stated they were going to use the extra cash to invest in a business. Could we not just say we planned to buy a couple of nice cars? Will the bank have an issue with increasing the mortgage? Income multiples are absolutley fine.

looneyboy

That was exactly what I was hoping to do with First Direct. We wanted to release some equity now at renewal of the mortgage offer and leave it in our savings account, offsetting against the loan, until we needed it.

They basically stated they would only lend if you were either about to purchase the item (and had written quote etc) or had ordered it etc. Part of the money we were hoping to release (in addition to the business funding) was going to go towards some building work at some point in the next few year or so. But as I had not gone as far are full quotes, appointing builders etc, they would not allow this..

They kept quoting that they lend on a needs basis not on a what if!

JQ.

Looks like I'm off to place an order for a couple of new Porsche's then.