Mortgage and build/renovate: inform mortgage company?

oh_know

Thinking of buying a bungalow on a 90% LTV giving me plentyof spare cash to renovate.

I have the self build option (self build mortgage) but thispost, for simplicity, is to explore the “normal” mortgage options that I mighthave

So lets assume the following:

I mortgage at 90% LTV, Leaving mespare cash to pay for building and I then go ahead and renovate the bungalow.After work is done (probably tied in with a fixed rate end date on themortgage, I revalue and get a circa 55% LTV mortgage.

The above sounds good to me but the questions I have are:

1. Must I inform the mortgage company of myintentions or indeed once I start work? And if so what are they likely to sayor do?


2. If I decided it was easier just to live in acaravan and knock down and rebuild I assume I am obliged to inform the mortgagecompany, at which point they are likely to not be happy due to risk ofincomplete works etc. So would it be illegal or simply unwise to just move inand not tell them what I am doing! then just re-mortgage at the end of the build?(what could they do if all went ok?)



All thoughts appreciated

Mortgage_Mark_2

Best advice would be to take the advice and reponses from your previous thread asking about this.

Annisele

On your other thread you said the property was likely uninhabitable - so if this bungalow is the same property, you're not getting a 90% mortgage on it.

1. Yes. The terms and conditions of your mortgage will require you to ask permission. And at 90% LTV, the lender will say no.

2. Worst case, the lender will find out what you're doing, issue possession proceedings, sell the property at auction, then pursue you for the balance. That would make it very difficult for you to get another mortgage ever again. There are other unpleasant things that could happen that aren't quite as bad as that, but in short don't do it.

oh_know

the other thread is a different property all together, this one is habbitable and could be lived in and developed around the edges so to speak.

Annisele

Then it depends on what you mean by "developed around the edges". In my eyes, knocking down is not developing around the edges!

oh_know

Thanks for all the replies I will think about it some more. I reckon that if it comes to it (and i doubt it will) then I might bend the truth a little. I appreciate that there is some risk but with budget and plenty of time on my side I see minimal risk, whether mortgage providers would see it that way i dont know! ( i guess thats might be the question)
sorry for dumping thoughts out here!

Thrugelmir

Will be a term of your mortgage contract to inform the lender.