Acceptable reasons for additional borrowing on current mortgage

adamr7747

Hi,

We’re considering some changes in our lives & the options include some combination of buying a new property at auction and/or sending our kids to private school. I’m considering asking my lender (NatWest) for an extension of my mortgage borrowing to help with this. I know from personal experience, a few years ago, that lenders won’t necessarily just let you withdraw funds from your mortgage, even if you meet the affordability, LTV etc requirements. Does anyone know if NatWest would look more or less favourably at either of my potential reasons? I’ve got some flexibility in options, but am concerned that NatWest will be suspicious if I ask with one reason & they say “no” & then I ask with another reason!

Thanks,

Adam

ACG

Natwest say anything legal. I have never tested that btw, going in and pulling out £20k to put on black at a casino, I cant see them agreeing to that but who knows. 

pramsay13

If you're willing to be economical with the truth why not just start with the reason you know will be acceptable.

adamr7747

pramsay13 said:

why not just start with the reason you know will be acceptable.

Well, that's the thing - I don't know what would be acceptable!
Adam

demontfort

I got turned down for £25k by First Direct when I said I would be investing the money in FTSE shares. Tried again a few months later when I said I would be using the money to buy a new car and they gave me the money.

pramsay13

adamr7747 said:

pramsay13 said:

why not just start with the reason you know will be acceptable.

Well, that's the thing - I don't know what would be acceptable!
Adam

Anything to improve the property should definitely be okay. 
New windows / kitchen / roof

ACG

pramsay13 said:

If you're willing to be economical with the truth why not just start with the reason you know will be acceptable.

You realise that is a criminal offence? 
I doubt you would end up behind bars, but you could find yourself on a fraud list somewhere. 

[Deleted User]

pramsay13 said:

adamr7747 said:

pramsay13 said:

why not just start with the reason you know will be acceptable.

Well, that's the thing - I don't know what would be acceptable!
Adam

Anything to improve the property should definitely be okay. 
New windows / kitchen / roof

And your suggested response for when the underwriter requests builders quotes pre dating the application? 

adamr7747

Well, I talked to NatWest. They said for buying a property they wouldn't proceed until my offer is accepted (even though the mortgage would be on my existing property) - which is useless for me as it would take too long after the end of the auction. For school fees they want an invoice - seemingly a new mortgage every school term!

All in all quite annoying and galling that it's my money, but they won't let me get at it. I also subsequently found something on their website saying they let you extend borrowing for holidays and cars - so they'll let people throw money away, but not use it for investments - like @demontfort's experience. Where's the logic?

MaryNB

adamr7747 said:

Well, I talked to NatWest. They said for buying a property they wouldn't proceed until my offer is accepted (even though the mortgage would be on my existing property) - which is useless for me as it would take too long after the end of the auction. For school fees they want an invoice - seemingly a new mortgage every school term!

All in all quite annoying and galling that it's my money, but they won't let me get at it. I also subsequently found something on their website saying they let you extend borrowing for holidays and cars - so they'll let people throw money away, but not use it for investments - like @demontfort's experience. Where's the logic?

It's not and they will. You're asking to borrow more money and in both cases they've agreed to lend you the money, but it has to be under their terms - fees invoice or proof of offer. You're borrowing more money and they want you to show proof you will be using it as you say you will. 

adamr7747

MaryNB said:

adamr7747 said:

it's my money

It's not

Fair point. Getting carried away. I still don't understand their logic in terms of what justification they accept, but I guess I will just have to get over it