Use of Funds for Equity Release

[zuby84]

Hey,

I'm currently half way through a BTL mortgage application with Natwest to re-mortgage a house which currently has no mortgage outstanding on it. Looking to raise circa £220k and I've been approved and the legals have even been done.

However, now Natwest are asking me for all sorts of information and wanting a schedule to find out what the money is going to be used for? It's going to be used for further property re-investment (don't have details of exact property yet) but I get the feeling they're not happy with this. I can't help but thinking if I wanted to buy a new Ferarri for £200k they would say "yes" straight away.

Has anyone else experienced such close scrutiny of what the funds of a straightforward BTL re-mortgage are going to be used for and is "to fund further property purchases" allowed by lenders?

Cheers

Thanks

[Sarnie]

zuby84 said:

Hey,

I'm currently half way through a BTL mortgage application with Natwest to re-mortgage a house which currently has no mortgage outstanding on it. Looking to raise circa £220k and I've been approved and the legals have even been done.

However, now Natwest are asking me for all sorts of information and wanting a schedule to find out what the money is going to be used for? It's going to be used for further property re-investment (don't have details of exact property yet) but I get the feeling they're not happy with this. I can't help but thinking if I wanted to buy a new Ferarri for £200k they would say "yes" straight away.

Has anyone else experienced such close scrutiny of what the funds of a straightforward BTL re-mortgage are going to be used for and is "to fund further property purchases" allowed by lenders?

Cheers

Thanks

Of course they want to know where the funds are going......

Natwest usually want sales particulars of the next property being purchased and won't release funds until they have full details of exactly where the funds are going and then your position afterward Eg is £220k actually just the deposit on a £700k purchase and you're going to be taking on a £480k onward BTL mortgage, thus putting their potential smaller mortgage at increased risk.

And they don't usually just let you bank the cash to make you a "cash buyer".

[Ozzie Osmond]

zuby84 said:

I'm currently half way through a BTL mortgage application with Natwest to re-mortgage a house which currently has no mortgage outstanding on it.

Does that qualify for tax relief?