Equity Release

rpatters17

Hi - want to release 50k of the equity tied up in my property. I have approached my lender regarding additional borrowing and financially all looks ok. However, my lender is insisting that I stipulate exactly what I want to use this money for with quotes etc. I actually have a range of home improvements planned as I have explained to them although have not costed in detail.. My feelings are though as long as I can afford the payments etc why is this their business? Is this typical of lenders?

GDVS

Fundamentally, it's their business because you want them to give you their money. Not a lot of room for discussion on this one, they can make whatever requirements they want and you have a choice to meet them or not be allowed to borrow the money.

holly_hobby

Because its not for purposes such as settlement of unpaid taxes with HMRC, business injection or start up (notwithstanding BTL property), or of course any illegal activity, with debt consolodation also usually having a max overall ltv ceiling.

Hope this helps

H x

Wh05apk

Normally they will only ask for details if you are making "structural" changes as that could affect their security, if you are simply updating the bathroom/kitchen/landscaping etc you will normally be ok, I am assuming £50k is not a large proportion of the value of the property?