retaining mortgage

kate_1234_2

Hi my names Kate and i'm new to this site.

i'm looking for help.

I'm struggling to understand how the mortgage retention works.

Not sure how it works.

My mortgage is for £95000 with 10% deposit so i have the £9500. The retention is for £2708 and I need this work completing. I can't get my head round it. If i pay the £2700 to get it sorted then I will be short for my deposit? I don't have another £2700 laying around the house to pay for this upright.

Any help is really appreciated.

Thanks in advance.

kingstreet

The lender will retain £2,708 of the mortgage advance, so to complete, you have to increase your deposit by £2,708.

You move in and get the work done.

You provide evidence of the work being done to the lender and it releases the £2,708 retention.

You get the £2,708 from the lender and you use it to pay the contractor, or repay yourself if you used credit or other savings to "bridge" the retention to allow yourself to complete.