New MTG and money for renovations and overdraft!

Jim_H

Hi,


Is it possible to borrow more than you need to pay for renovations of things for a new house.

For example we own a house at £150,000 with no mortgage. We'd need one for £50,000 to get us a house at £200,000. Can you borrow £60,000 and keep £10,000 for new things for the house?



Also, if your bank statements show you being in an overdraft for a month or two could this affect the lending decision?

Ta

Jim

YHM

Yes, no problems with that, as you effectively just hold back some of the equity from your house sale.

It depends on how you are using your overdraft, as to whether it would impact the lending decision or not. If you are just dipping into an authorised overdraft, you should be fine

Jim_H

Thanks YMH. I tend to get my salary and divide it by four weeks and move 300 a week into my account from another so sometimes it may be say £100 overdrawn (authorised O/D) for a couple of days tops before coming back out. It's fairly obvious from statements whats going on, especially over a three month window for example.