refused advance

myright

A friend of mine was declined a further advance for home improvements on his property. although he has 93 odd percent equity.

The advance would have taken his equity down to 50 odd per equity.

He was refused on the basis of having low Income and dependant children .

What will be his options now?

ACG

Find another lender or speak to a broker.
If doing themselves check affordability before applying.

myright

Good idea^^^ could increasing the term of borrowing have made a difference to the decision?

Also changing a product with the dame lender. is that classed a remortgage?

myright

Bumppppppppppp

Contemptuous

myright wrote: »

Also changing a product with the dame lender. is that classed a remortgage?

No. It's only a remortgage if you change lenders.

myright

Oh thank u

Thrugelmir

43% drawdown for improvements seems a high figure. Is the real purpose?

myright

Oh is it? Whats a realistic drawdown percentage? To get an advance?
but doesnt that percentage be based on after work is completed. As to how much it will be worth

amnblog

You cannot borrow funds based on a value with completed improvements.

Lenders will only assess the property as is.

Otherwise you would be using 'security' that does not yet exist.

myright

Oh I see. But would they still do a valuation before making a decision

Thrugelmir

myright wrote: »

Oh is it? Whats a realistic drawdown percentage? To get an advance?
but doesnt that percentage be based on after work is completed. As to how much it will be worth

My comment was based on the fact that the proposed advance represents a high % of the existing value. Which suggests that the works would have to be significant in nature. Not just an extension or kitchen/bathroom refurbishment. Are any of the funds intended to be used to clear existing debt for example.