mortgage to replenish savings/spend

lamby999

I was on gardening leave when i bought my flat for cash ( all my cash) . I now want to buy various things for the flat ( speakers , sofa,bed,home theatre,curtains,carpets,bookcases,shelves,savings etc) and also to have some access to cash available should I be out of work for a few months.
I figured a fee free offset mortgage of £50-£100k would be good . My flat was purchased for £550k and I earn £75k plus annual bonus which can be quite large, but can also be zero.
First direct told me they would only lend me any money for a specific building related expense like an extension , saying it was an FSA regulation that they couldnt lend money to replenish savings or purchase furnishings or holidays, although when i asked for details regarding this they were a bit vague.
I wanted an offset mortgage as I could at any minute be able to pay off all the money , and at the same time wouldnt need much of it unless I get sick or fired, so a non offsetter would/could work out much more expensive.
So..
1) does such an FSA regulation exist and if so what are its details ?
2) which lender(s) do not share this policy and to what degree assuming such a regulation does not exist.
thanks for your time

ACG

Im not sure if a rule exists, but i know mortgage lenders do sometimes insist on quotes for work etc.

A mortgage isnt there to help you with your cash flow.

Maybe arrange an overdraft, your income would support a sizeable one, but not anywhere near the amount your looking for? If you use it, you pay interest...if you dont then your interest free.

betmunch

1. No - They are just saying that so you wont question it.

2. All lenders set their own policy on what any raised capital can be used for. Every lender is different, but they will all ask you basic questions at least on what the raised capital is for.

Hope that helps

lamby999

understood thanks

kingstreet

I love banks!

If they choose not to do something it's "because of an FSA rule" as they obviously aren't going to tell you the rest of the world is happy to give you "a remortgage on an unencumbered property" without much trouble. Come to think of it, they probably don't know in their blinkered little one-product world what is available elsewhere...

Lenders may shy away from business starts up capital and tax debts, but pretty much all other stuff can be obtained on the high street.

FSA rule, my a*se!

Thrugelmir

lamby999 wrote: »

I wanted an offset mortgage as I could at any minute be able to pay off all the money ,

Why would any lender want to lend you money and make no profit?