Natwest Additional Borrowing

gunner786

Hi i got a reply from natwest after applying for £80,000 additional borrowing for home improvements. 

What do i need to give them because mostly quotes from builders are by mouth only and hand written.

Feeling very confused what to give them.

I told them it will be for extension, kitchen, electrics and plumbing.

Starting to think it will be easier just going to a different lender and get a new mortgage but im stuck in a fixed term till january 2028 and ERC is £2000. Outstanding mortgage is £51000 with £80,000 more applied for.

Please provide a breakdown of the home improvement, Include customer contingency plans for over run costs, confirmation of the customers contributions and if the property will remain habitable while works are carried out.

born_again

Did they not explain what they need?

If not ring back & ask.

kingstreet

A remortgage for the same thing would see the same request for reports and estimates.

gunner786

born_again said:

Did they not explain what they need?

If not ring back & ask.

Please provide a breakdown of the home improvement, Include customer contingency plans for over run costs, confirmation of the customers contributions and if the property will remain habitable while works are carried out.

MyRealNameToo

gunner786 said:

Hi i got a reply from natwest after applying for £80,000 additional borrowing for home improvements. 

What do i need to give them because mostly quotes from builders are by mouth only and hand written.

Feeling very confused what to give them.

I told them it will be for extension, kitchen, electrics and plumbing.

Starting to think it will be easier just going to a different lender and get a new mortgage but im stuck in a fixed term till january 2028 and ERC is £2000. Outstanding mortgage is £51000 with £80,000 more applied for.

Please provide a breakdown of the home improvement, Include customer contingency plans for over run costs, confirmation of the customers contributions and if the property will remain habitable while works are carried out.

so you are happy to commit to paying someone circa £80,000 with just a verbal conversation and a handshake? Will wait for the next post when you come back saying the builder is asking for more money etc!


In the first instance do exactly what they say, break the total down to the individual jobs and how much you've allocated to it, you could go further and sub divide it between labour and materials but technically they haven't asked for that. 

If it adds up to £79,999 then you need to answer the next question, what happens after taking the old kitchen out they discover a problem with a wall that needs more than £1 of work to fix, what are you going to do? Do you have other funds you can call on? Will you cancel one of the other jobs to free up the funds? Need to borrow more money? 

By the sounds of it they are wanting for it to add up to more than £80,000 but you can only show what it shows. 

Finally, will you be able to live in the house the whole time? What's your plans for the days you have no kitchen? If you are planning to live elsewhere for 2 months where? Is it in the budget? 

MWT

gunner786 said:

What do i need to give them because mostly quotes from builders are by mouth only and hand written.

Feeling very confused what to give them.

I told them it will be for extension, kitchen, electrics and plumbing.

If you are spending £80k on an extension and new kitchen you need a lot more than just a rough quote on a scrap of paper...

How about plans and engineering calculations for any support required, planning permission/building control arrangements etc. ...

When you see these TV shows where someone gets ripped of by cowboy builders, this how it starts... 

ACG

Ask the builders for written quotes. If it makes you feel better, tell them they are for the mortgage lender. 
Will the property be habitable? If so - tell them that, one sentence should be enough. If not, tell them how long you will move out for and the plans. 
Let them know if the amount you are applying for involves a contingency fund, it not confirm that. If so, let them know and how much you have included. 

Maybe its because I do this every day, but your asking for £80k... Its not a lot for them to ask for. 

gunner786

ACG said:

Ask the builders for written quotes. If it makes you feel better, tell them they are for the mortgage lender. 
Will the property be habitable? If so - tell them that, one sentence should be enough. If not, tell them how long you will move out for and the plans. 
Let them know if the amount you are applying for involves a contingency fund, it not confirm that. If so, let them know and how much you have included. 

Maybe its because I do this every day, but your asking for £80k... Its not a lot for them to ask for. 

Thank.you. is a mixture of alot of stuff i want to get done. Garden, driveway, kitchen units refit etc. My builders are solid but will be using different people for different jobs. So got abit overwhelmed lol. The extension is only about 2m so doesnt need planning permission but overall everything will add upto about 60k with about 20k left for use elsewhere. My house is worth about 400k with 51k left i thought they might not ask too msny questions due to the equity we have even after the additional.

kingstreet

When you embark on structural alternations, the lender is as much interested in how its security for the current loan might be affected during the construction process than it is in the funds for the work to be done.

ACG

gunner786 said:

ACG said:

Ask the builders for written quotes. If it makes you feel better, tell them they are for the mortgage lender. 
Will the property be habitable? If so - tell them that, one sentence should be enough. If not, tell them how long you will move out for and the plans. 
Let them know if the amount you are applying for involves a contingency fund, it not confirm that. If so, let them know and how much you have included. 

Maybe its because I do this every day, but your asking for £80k... Its not a lot for them to ask for. 

Thank.you. is a mixture of alot of stuff i want to get done. Garden, driveway, kitchen units refit etc. My builders are solid but will be using different people for different jobs. So got abit overwhelmed lol. The extension is only about 2m so doesnt need planning permission but overall everything will add upto about 60k with about 20k left for use elsewhere. My house is worth about 400k with 51k left i thought they might not ask too msny questions due to the equity we have even after the additional.

Ask the main builder to give you a written quote for your mortgage lender. If they have been around a while it wont be their first. 

gunner786

ACG said:

gunner786 said:

ACG said:

Ask the builders for written quotes. If it makes you feel better, tell them they are for the mortgage lender. 
Will the property be habitable? If so - tell them that, one sentence should be enough. If not, tell them how long you will move out for and the plans. 
Let them know if the amount you are applying for involves a contingency fund, it not confirm that. If so, let them know and how much you have included. 

Maybe its because I do this every day, but your asking for £80k... Its not a lot for them to ask for. 

Thank.you. is a mixture of alot of stuff i want to get done. Garden, driveway, kitchen units refit etc. My builders are solid but will be using different people for different jobs. So got abit overwhelmed lol. The extension is only about 2m so doesnt need planning permission but overall everything will add upto about 60k with about 20k left for use elsewhere. My house is worth about 400k with 51k left i thought they might not ask too msny questions due to the equity we have even after the additional.

Ask the main builder to give you a written quote for your mortgage lender. If they have been around a while it wont be their first. 

Just got this from the natwest advisor.
As an update, the underwriter has agreed the application subject to two things:

 

1. The valuation (which has been instructed) 

 2) Full detailed builders/architects plans and quotes for the proposed home improvements to be completed with the £80000 being raised

Will just a builders quote do? Even though i wont be needing planning permission but can i also send a statement of a personal loan £11000 which i am also going to pay off. And just a builders quote of the works quoted for and a price.