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Nationwide full application adding to mtg
bunnymtg
Posts: 54 Forumite
Hi there,
We have an AIP with Nationwide for £350k.
My husband is going in to the see the broker tomorrow as we have an offer accepted on a property for £325k and we are about to start the full application.
Sorry if this sounds naive but, we want to do some works on the property, home improvements etc. seeing as the purchase price is £325k and we have an AIP for £350k, can we use the remaining 25k for home improvements? Does it work like that? We have seperate funds from the sale of our property for fees etc.
Thank you!
Rachel
We have an AIP with Nationwide for £350k.
My husband is going in to the see the broker tomorrow as we have an offer accepted on a property for £325k and we are about to start the full application.
Sorry if this sounds naive but, we want to do some works on the property, home improvements etc. seeing as the purchase price is £325k and we have an AIP for £350k, can we use the remaining 25k for home improvements? Does it work like that? We have seperate funds from the sale of our property for fees etc.
Thank you!
Rachel
0
Comments
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No.
they will lend their maximums based on the purchase price/valuation and your incomes. The valuation/purchase price would be their limiting factor in this instance.I am a Mortgage AdviserYou should note that this site doesn't check my status as a mortgage adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.0 -
Thanks ACG, is there no option to add for home improvements etc? I just remember stuck in my mind that when I used to process application for a broker that this cropped up a few times.0
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It did in the past, but unless its a right to buy that is no longer available.I am a Mortgage AdviserYou should note that this site doesn't check my status as a mortgage adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.0
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Hold back some of your existing equity on the sale of property and borrow more at the outset instead.0
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When you do the application they will ask you how much you want to borrow, and calculate the LTV based on that amount. Provided you will still meet the LTV criteria with the lower value house and the eligibility criteria (i.e. you can afford the repayments now and should interest rates rise) then of course you can ask to borrow more than you "need". It's prudent to keep some spare cash for emergencies anyway.student100 hasn't been a student since 2007...0
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You say "the remaining £25K" - be aware that you won't even be able to borrow £325K on a £325K house. You'll likely be able to borrow £292,500 tops.0
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