Additional borrowing on mortgage purpose

nohassles

Nationwide's policy

you could borrow up to 90%* of the value of your home (including your current mortgage), for any reason except to raise money for business purposes or to buy land or property to be let

How is this enforced? Do you have to prove how the money is being spent?

lonibra

Nationwide will not allow borrowers to borrow money on their residential mortgage for the purposes you listed as it can land them in trouble. So they will do what they can to avoid this happening - eg: large loans for home improvements: ask for plans and quotes, etc.

In spite of all that I am sure people commit application fraud and lie about the purpose and get away with it, if that's what you are asking.

IAMIAM

This happens all the time. Most people put non structural home improvements, because anything else usually ends in a big debate between lender and borrower. I don't get it to be fair. It almost seems far easier, to sell the house, bank the cash and then buy the house back at 90% LTV. If only. 

superM

A few years ago with I borrowed more on my NatWest mortgage they asked for plans and quotations. 
No banks will just give cash out without knowing where it will be used.

nohassles

It says for any reason. If I want to use that money for a huge holiday do I have to provide the tickets? If I want to buy a car do I have to provide the invoices?

IAMIAM

nohassles said:

It says for any reason. If I want to use that money for a huge holiday do I have to provide the tickets? If I want to buy a car do I have to provide the invoices?

Exactly. The amount of times I've watch dragons den, we remortgaged to fund the business blah blah blah

bamgbost

nohassles said:

It says for any reason. If I want to use that money for a huge holiday do I have to provide the tickets? If I want to buy a car do I have to provide the invoices?

No you may not need evidence for those examples listed. Based on what I have seen in the past