Can I borrow my mortgage deposit?

MarcMCFC1986

Hello

Can't find the answer for this anywhere on google.

If I put a £25k deposit down on a house which costs £250k (10% Deposit), can I immediately borrow that money back for home improvements etc.? Or does the bank have to always hold a minimum of 10%, and so I'll have to wait until I've paid some of the mortgage off before borrowing?

Hope this makes sense, and thanks in advance.

[Deleted User]

You can borrow money, but you'll need to find a lender who will take on the risk, having just taken our a new mortgage.

You won't get a secured loan if there's not enough equity.

davidmcn

If you mean from your mortgage lender, then if you have a 90% LTV mortgage product they're not going to lend above that. If you need the money immediately after completion you'll need to borrow it from someone else. If you need it from your mortgage lender then as you suggest you wait until  you've paid enough off and/or the value of the property has gone up.

MarcMCFC1986

davidmcn said:

If you mean from your mortgage lender, then if you have a 90% LTV mortgage product they're not going to lend above that. If you need the money immediately after completion you'll need to borrow it from someone else. If you need it from your mortgage lender then as you suggest you wait until  you've paid enough off and/or the value of the property has gone up.

Yes, I did mean from the lender. 

Okay, so wait to pay some off or the house value to go up then! I don’t actually need it anyway, just wanted to know for future reference as planning to move house and start again with 10% deposit - so if doing that we’ll need somewhere ready to live in and doesn’t need any immediate major work.

Thanks for your answer.