When to apply for Home Improvement loan

betmunch

venster wrote: »

Santander were happy to fund the deposit with loan, however I didn't take that option and borrowed from a friend instead.

He chose not to take that option.

He borrowed money from a friend. Thats still a loan.

betmunch

DannyboyMidlands wrote: »

Surley if you take a home improvement loan and give it to your mate then that would be fraud?

That one is one that hasnt been commited yet though, thats what he wanted the advice on.

maninthestreet

OP - you're chasing a dog that's never going to bark here - no lender is going to lend you any more money secured against your home, as you are already at 90% LTV. You will have to find another way to re-pay your friend, who may not be happy to hear that they can't be re-paid as quickly as they may have been led to believe.

sockpuppet

Sorry, but if the answers are not what you want to hear - call Santander and ask them.
It is based on affordability, but affordability is based not only on income but also on LTV, it is a 2 part decision.
You could apply now, IF you had sufficient equity in the property.
Any other secured loan lenders will also do a valuation on the property and will not lend if there is not sufficient equity.

venster

I will be calling Santander, but there's no immediate hurry to pay back.

I just don't like owing to friends - so would like to sort this sooner rather than later.

In hindsight I should have taken the Santander loan to fund the deposit, but by doing it the way I want to, it would be more affordable as I can take the loan out over duration of the mortgage, rather than 5-10yrs as a personal loan.

I will pursue this as I was told this time last year "I'd never get a mortgage" - well that wasn't true, and I did.

Out of interest why are you saying I wouldn't be able to borrow anymore than 90% ltv - there are a few 95%ltv mortages out there...

sockpuppet

But you are not taking a 95% mortgage, you already have a 90% mortgage now you want to add additional borrowing.

I know Halifax have a limit of 85% when taking out further borrowing (not sure about Abbey) this means your current mortgage amount plus your further borrowing cannot exceed 85% of the value of the property.

If you go to another secured loan lender, they will also have LTV limits. I know one lender who will only go to 80% of the current value (your mortgage plus the loan together).

This is to protect them if the value of your house falls - they need enough equity so that if you ever get repossessed that there is enough to pay them back after the mortgage has been cleared.

I dont think there is a limit to when you can apply just what the equity available is - but every lender has their own criteria.

Best bet is to just call Santander & ask the question. Generally speaking though, I think it is often limited to home improvements only and they may want evidence of what you will be doing with the money (or they may not)

I dont think there are any lenders though who will do additional lending past 90% as far as I know

Wh05apk

venster wrote: »

Out of interest why are you saying I wouldn't be able to borrow anymore than 90% ltv - there are a few 95%ltv mortages out there...

.......................but not with Abbey.

Thrugelmir

lazer wrote: »

Read above bits on bold - they didn't lie on the application

There's nothing in the statement made to confirm this.

One would question the mortgage brokers advice.

As its the solicitor that would confirm the source of the deposit to the lender.