Remortgage and taking more cash

edited 30 November -1 at 1:00AM in Mortgages & Endowments
14 replies 1.3K views
superdonsuperdon Forumite
312 Posts
Part of the Furniture Combo Breaker
✭✭
edited 30 November -1 at 1:00AM in Mortgages & Endowments
So we plan to remortgage to a new lender in a few weeks. We had planned to take around £5k above what we owe on the current mortgage to do a few home improvements which will help the value of the house (new roof, repointing and some redecoration).

We actually have about 5k sitting in premium bonds at the moment. This is our safety net savings.

The question is. If we have all the work done now and spend that 5k before the remortgage, will it be a problem taking that during the remortgage to put back into savings and get the safety net back?

Hope that makes sense.
«1

Replies

  • superdonsuperdon Forumite
    312 Posts
    Part of the Furniture Combo Breaker
    ✭✭
    Anyone know if the new lender (probably TSB) will be happy to provide the extra cash on this basis?
  • No, TSB wouldn't be willing to lend extra money to replenish savings. They would, however, happily lend the £5k you're looking for to use on home improvements.
    Slummy mummy!
  • amnblogamnblog Forumite
    11.8K Posts
    Eighth Anniversary 10,000 Posts Name Dropper Photogenic
    ✭✭✭✭✭
    This is not a problem, state the purpose of the extra funds as home improvements, not investment, to avoid any confusion.
    I am a Mortgage Broker

    You should note that this site doesn't check my status as a Mortgage Broker, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.
  • superdonsuperdon Forumite
    312 Posts
    Part of the Furniture Combo Breaker
    ✭✭
    amnblog wrote: »
    This is not a problem, state the purpose of the extra funds as home improvements, not investment, to avoid any confusion.

    Ok so the plan would work ok? Seems to conflict against the advice above! I guess as long as I say its for home improvements rather than to go into savings that will be ok?
  • amnblogamnblog Forumite
    11.8K Posts
    Eighth Anniversary 10,000 Posts Name Dropper Photogenic
    ✭✭✭✭✭
    You need to take your choice on the advice given on this forum.

    Not everyone can be right.
    I am a Mortgage Broker

    You should note that this site doesn't check my status as a Mortgage Broker, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.
  • superdonsuperdon Forumite
    312 Posts
    Part of the Furniture Combo Breaker
    ✭✭
    amnblog wrote: »
    You need to take your choice on the advice given on this forum.

    Not everyone can be right.

    Understood ;)

    Are TSB likely to ask for more info on the home improvements? Quotes etc? I know I need to be honest throughout the application but if I am asked for more info how do I deal with it? Do I explain I already had the work done and the extra money is to pay for it.
  • termherotermhero Forumite
    50 Posts
    Sixth Anniversary 10 Posts Combo Breaker
    Hello, I remortgaged 18 months ago to the sum of £45,000 extra for home improvements with C & G (who provide for TSB I believe) and didn't have to provide anything.

    I did have plenty of equity and excellent credit rating though, I'm not aware of your circumstances.
  • dimbo61dimbo61 Forumite
    12.1K Posts
    Part of the Furniture 10,000 Posts Name Dropper Photogenic
    ✭✭✭✭✭
    Things have changed and now we have MMR
    This is where the lenders now ask how much you pay for a HAIR CUT!!
    So if you do have lots of equity and good LTV, income etc then NO PROBLEM.
    However if you have debts, In your overdraft every month, low income or lots of dependants then they may ask why you want the extra
  • superdonsuperdon Forumite
    312 Posts
    Part of the Furniture Combo Breaker
    ✭✭
    Affordability and LTV should be no problem. The question was about the circumstances of spending the money now on the house and then getting the cash back at remortgage. Just wanted to know how to play that.
  • ThrugelmirThrugelmir Forumite
    82.1K Posts
    Part of the Furniture 10,000 Posts Name Dropper Photogenic
    ✭✭✭✭✭✭
    If you are debt free shouldn't be an issue. Lenders are likely to be more wary if you have unsecured debts. Therefore questioning in their minds the true purpose of the equity withdrawl.
    It's not whether you're right or wrong that's important, but how much money you make when you're right and how much you lose when you're wrong." — George Soros
This discussion has been closed.
Latest MSE News and Guides

Energy price cap could be extended beyond 2023

New plans have just been announced by the Government

MSE News

Cheap contents insurance for tenants

DON'T assume your landlord covers you

MSE Guides

Summer sizzlers round-up

Incl £2ish sun cream & £1.50 disposable BBQs

MSE Deals