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mortgaging for home improvements
Lukeowen7
Posts: 1 Newbie
Hi,
I have no mortgage on my house at the moment but I'm thinking of mortgaging my house to realise money for an extension and loft conversion and other bits and bobs.
Before I go down the route of a mortgage rather than a loan I wanted to know if I did get a mortgage against my house will the lender place the money in my account to pay for the work or will the lender pay the builders directly as the work is being done?
I only ask this because the cash prices I've been quoted for the work is cheaper and I'd save a lot overall.
Thanks for any feedback.
I have no mortgage on my house at the moment but I'm thinking of mortgaging my house to realise money for an extension and loft conversion and other bits and bobs.
Before I go down the route of a mortgage rather than a loan I wanted to know if I did get a mortgage against my house will the lender place the money in my account to pay for the work or will the lender pay the builders directly as the work is being done?
I only ask this because the cash prices I've been quoted for the work is cheaper and I'd save a lot overall.
Thanks for any feedback.
0
Comments
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For home improvements the lender would generally just credit the money to yourself, however they'd be within their rights to request quotes for the work beforehand and even a re-inspection....I am a Mortgage BrokerYou should note that this site doesn't check my status as a Mortgage Broker, 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 -
Just mortgaged for similar. The lender will pay the money into my account and I will pay the builders.
I was asked to take quotes for the work to the application interview, and they were looked over in detail.
I'd rounded the amount I wanted to borrow up by about £1500 from the highest quote, to give me some contingency money, and was asked what this extra was for.
No mention of inspection of completed works.
Put your hands up.0 -
Don't forget to tell HMRC who you are giving the cash to as they will need all the revenue they can get in the next few months.I am a Mortgage Broker
You should note that this site doesn't check my status as a Mortgage Broker, 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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