Help needed loan with equity from house

chelly1972

Hi Guys,
hope someone can help, great news sold our house, but for us to buy another house with the equity from the sale of ours we needed 25000 extra,, so decided it would be better to go for a loan over 5 years, with sainsburys.
Now the question is the solicitors have asked for proof of where the money has come from, do i need to send loan agreement in, and am i allowed to use this money to buy the rest of my house?
i have checked the terms and conditions from sainsburys and it doesn't say we are not allowed.
Just a little worried as this is the final bit before exchange/completion.

[Deleted User]

Did you give the correct reason when you applied for the loan?

Assuming you did, the the solicitors are just doing money laundering checks.

Thrugelmir

Was your mortgage lender aware of this additional borrowing, i.e. it was declared at the time of the mortgage application. The solicitor is duty bound to advise the lender in any event.

chelly1972

hi,
at the time we applied for the loan we was thinking of staying and just doing the house up a little, but realised it was worth more than we thought, so decided to sell.
and thrugelmir i don't need a mortgage and we have 151000 from the sale of the house (profit) , and decided to use the 25000 on top to buy another house.

kingstreet

What is the rate on the loan?

I can't imagine it's lower than the rate you could have got on a sub-50% LTV mortgage product with no fees.

Thrugelmir

chelly1972 wrote: »

hi,
at the time we applied for the loan we was thinking of staying and just doing the house up a little, but realised it was worth more than we thought, so decided to sell.
and thrugelmir i don't need a mortgage and we have 151000 from the sale of the house (profit) , and decided to use the 25000 on top to buy another house.

Then all you need to do is evidence the source of the money, i.e. the loan agreement and your bank statement.