Halifax RTB mortage - addtional borrowing

dh1981

I'm hoping someone will have similar or recent experience with this and may be able to help.

I have a RTB mortgage with Halifax and am looking to borrow some additional money for home improvements. I bought the property from the council just over a year ago so am still within the discount repayment period.

I had a meeting in branch with Halifax, before I realised I needed deed or postponement and they told me to go back to the council to request this - and that I can only borrow for home improvements, not debt consolidation.

I left it a few months, as I thought it would be better to have the mortgage for over a year - and also discount repayment wouldn't be the full amount so it would be easier to get the additional money. I spoke with the council and they said I need to provide documentation from the lender showing:

• current redemption amount and charges
• proposed amount to be borrowed
• property value

My first call back to the bank last week and they said no problem, but they'd have to get someone to call me back to arrange for these documents to be sent.

My second call (as I missed their call and they didn't call again) they also said no problem and would arrange for someone to call.

My third call (as they didn't call back) and they said that:

• deed of postponement only required for debt consolidation (which the council doesn't allow anyway, and the bank already told me wasn't possible)
• they won't provide any documentation until I have gone through the application process and been accepted (which they previously told me they couldn't go through the process until they had deed of postponement)
• on RTB mortgages they will not provide additional lending until I present invoices and the work is complete.

Does anyone have any experience with additional lending with Halifax? I'm getting so many different messages that I'm not sure what to do next. I'm hoping the last person is wrong, but she sounded sure.
If I had the money to pay for the home improvements I wouldn't need the addional lending to cover it, so it seems a bit odd. I have quotes for the work, but apparently that is not enough - I have to have had the work done and paid for it already!

kingstreet

Whatever you need additional borrowing for, you MUST have written permission or a deed of postponement from the second charge holder as you are trying to borrow money against equity you do not yet own.

Councils will not grant this if you plan to use the money for non-home improvements. The days of using RTB property as an annual holiday/new car ATM are long over. Expect to be asked for estimates for improvements and receipts for the work being done and paid for.

How Halifax chooses to do things is its affair. If it wants certain things in a certain order you are going to have to do as you are asked.

dh1981

The money is only for home improvements, no debt consolidation or holiday etc.

I'm not sure how I'm ever going to get deed of postponement of the council won't do anything until they have docs from the bank, and the bank won't provide the docs until after the lending is agreed - which they can't agree until the council agrees. I'm going around in circles!

What I really wanted to know, is if anyone has got any additional lending from Halifax on a rtb mortgage before the works are carried out. If it's really not possible to borrow the money before they works are paid for then I might as well give up any hope of a new kitchen and boiler now.

Cheeky_Monkey

dh1981 wrote: »

I might as well give up any hope of a new kitchen and boiler now.

One of the drawbacks of home ownership I'm afraid. The Council will no longer install those things free for you so you have to pay for them yourself or go without until you can afford them.

marksoton

dh1981 wrote: »

I bought the property from the council just over a year ago so am still within the discount repayment period.

The fact you even mention this indicates what's going to happen with this property, and why you want to improve it....

dh1981

marksoton wrote: »

The fact you even mention this indicates what's going to happen with this property, and why you want to improve it....

What's going to happen with the property??
I have no plans to sell, I just wanted to improve the property so it's nicer to live in. I currently can't have a shower because of poor water pressure and have a problem with the kitchen which means the water from the sink runs into the washing machine. Just because I am a former council tenant doesn't mean my home shouldn't be nice to live in. The reason I mention the discount repayment period is because I know it's harder to borrow additional money during this time.