Declaring spend when borrowing more money

DazShot

I've built up some decent equity on my house and want to dip into it to borrow some more money. My current provider wants me to state what the money will be used for. A large proportion of it will be to consolidate other debts and then the rest will be spent on home improvements. However, they state in the application that the max I can put aside for debt consolidation is £10k or 15% of the amount I want to borrow and the debt I want to pay off is much bigger. My question is, will they actually check what you spend the money on?

I've done the maths and looked at alternatives, but personal loans won't cover enough either, especially as consolidating the debt includes paying off another loan. 

FlorayG

No I don't think they do. I once borrowed on my mortgage for 'home improvements' and bought a nice summerhouse and...a horse and horse trailer.
The problem might come when you want to remortgage I guess, if surveyors look at the house and it isn't worth the X more now than you borrowed. Unlikely.
Anyway you could argue that you being free of unsecured debt IS an improvement 

born_again

FlorayG said:

No I don't think they do. I once borrowed on my mortgage for 'home improvements' and bought a nice summerhouse and...a horse and horse trailer.
The problem might come when you want to remortgage I guess, if surveyors look at the house and it isn't worth the X more now than you borrowed. Unlikely.
Anyway you could argue that you being free of unsecured debt IS an improvement 

But turning a unsecured debt to a secured one is not the best of the options.
End of the day not paying a unsecured debt is not going to see you homeless, where as a secured debt can 🤷‍♀️

OP would be better off posting in debt section with a statement of affairs.

chanz4

They wont bother checking

silvercar

Not intending to use the money for the purpose it was given could count as fraud. You would be obtaining the money by deception. 

There’s a bit of a grey area, between borrowing for a purpose and that evolving into something else, but borrowing starting the money is for one thing then immediately using it for a different purpose, specifically one that they have said they won’t lend for, could put you in hot water.

Windofchange

As with all of these threads when they come up, think long and hard about this. As others point out you are turning unsecured debt into one which is secured on the roof over your head. Bad idea. The secondary issue is that you have presumably run up many tens of grands of loans if a standard loan (usually up to 25k) won’t cover it all. Have you addressed the underlying problem - I.e you? If you put all your unsecured debt on the house then will you just start wracking up more debt again? Have you actually learned a lesson or will you be back in a few years time trying to do the same again!?