Remortgage; what to do short term?

raaymaan

Hello all,

I'm new here so apologies if this thread is in the wrong place.

I'm planning a house extension which is to be financed by remortgaging, and my aim is to begin works within 18 months or so, pending successful planning approval.

My question is in two parts;
a) If I successfully remortgage for an amount more than my existing mortgage, what is the mechanism for me accessing the remainder of funds? Do I nominate an account for them to be paid into?
b) And if so, what would be a sensible method to safely keep them away, possibly earning interest, but being flexible and accessible when needed?

Some builders I've spoken to have recommended a percentage upfront, say 50%, and the rest payable on completion, and as I've never had 10s of thousands of pounds lying around before, I find that quite daunting and would like to make the most of the situation!

Many thanks, Rob

Mortgage_Adviser

Have you checked of the current lender is happy with the works requiring planning permission?

raaymaan

No, I haven't checked with the existing lender. At the moment I'm in the early planning stages, seeing what is indeed possible. I have architectural drawings but other than that I have not invested anything, so I'm currently only interested in the bits I'm not familiar with, such as what happens with the remainder of funds.
I guess calling my existing lender would be a good starting point, but I thought seeking some advice/opinions here would provide some quick insight.