Hoping to build: Can you put Wedding Costs into Mortgage without Bank knowing

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We are hoping to build in the near future - Can you incorporate 30-40 K into the mortgage or do the banks look for receipts for every cost on the build. i.e. if the house was going to cost 280K , we will look for a 320K mortgage and with the extra money pay for the wedding and other costs (8K loan at a higher interest rate to pay off). Can this be done?
 
Re: Can you put Wedding Costs into Mortgage without Bank knowing

The banks will lend you what they see fit after performing a valuation of your house. If your house is valued at say 360k by their valuer and they are offering you 90% then you should get 320k, but if the house is valued lower you may not. Wel, that's my take on it, I stand corrected.
 
Re: Can you put Wedding Costs into Mortgage without Bank knowing

The house will have to be professionally costed. Once the house is completed and you have equity left AND you can afford it then there is nothing to stop you getting a top up.
Seriously though we're in the grips of a recession, is it wise to borrow that much money to pay for a wedding. I'll answer that for you - it's not wise, it's pretty crazy. Then again I don't know your circumstances but would advise postponing the wedding and saving up for it.
 
Re: Can you put Wedding Costs into Mortgage without Bank knowing

I think for a house build (as opposed to a straight buy), they look for receipts every step of the way. Even with a house buy, they look for evidence of the actual price agreed/paid and not just the valuation - I'm pretty sure.

Sprite
 
Re: Can you put Wedding Costs into Mortgage without Bank knowing

They don't look for actual price paid when buying a house. So long as you're borrowing within the value of the house as per their valuation, they don't really care what you spend the money on.
 
Re: Can you put Wedding Costs into Mortgage without Bank knowing

We are hoping to build in the near future - Can you incorporate 30-40 K into the mortgage or do the banks look for receipts for every cost on the build. i.e. if the house was going to cost 280K , we will look for a 320K mortgage and with the extra money pay for the wedding and other costs (8K loan at a higher interest rate to pay off). Can this be done?

start, just think about what you're looking to do ... you want to pay off your wedding over the next 30 odd years? Are you sure you really want to do that, ignoring for a minute the question of what the banks will lend? From the sums above you're talking at a wedding cost of between 22K-32K - if you don't have any savings I'd say you're mad to even consider this cost!
 
Re: Can you put Wedding Costs into Mortgage without Bank knowing

start, just think about what you're looking to do ... you want to pay off your wedding over the next 30 odd years? Are you sure you really want to do that, ignoring for a minute the question of what the banks will lend? From the sums above you're talking at a wedding cost of between 22K-32K - if you don't have any savings I'd say you're mad to even consider this cost!


Totally agree 30 years to pay off a wedding is just crazy. I am doing both at the moment building and planning a wedding. I have made it clear if we only have 10k in the bank for a wedding that is all we will spend. There is a great book out called "Champagne wedding at bucks fizz price". I would have a look at that.
 
Re: Can you put Wedding Costs into Mortgage without Bank knowing

35,000 borrowed over 30 years at 5% incurs approx 32,500 interest, meaning the wedding will cost 67,500.
Are you prepared to spend this much on one day?
 
Re: Can you put Wedding Costs into Mortgage without Bank knowing

To be fair to the OP, he could split the mortgage with the wedding cost on a 5 year term (not that I am advising this course of action just giving some objectivity).
 
Re: Can you put Wedding Costs into Mortgage without Bank knowing

I think for a house build (as opposed to a straight buy), they look for receipts every step of the way. Even with a house buy, they look for evidence of the actual price agreed/paid and not just the valuation - I'm pretty sure.

Sprite

The bank doesn't look for a single receipt. It is the job of the engineer to confirm that each stage of the build is completed to the proper standard and that an amount of the mortgage can be drawn down on the basis of that work. Simple example. It takes one guy 30k to get the house to floor level, another guy may well take 70k - genuinley! Cheap one was on great ground and only needed 3 courses of blocks and little drainage. The second guy needed 7 courses and re-inforced walls and expensive drainage!!! Once the engineer signs off on it - that's all the bank needs! If you wanted to pay for a wedding you could "hide" a few thousand in each stage of the build. Whose to say it cost you 55k to build the roof or 58.5k???? Both figures are "normal"....

Saying all of the above - putting a wedding on your mortgage is not a good idea... CJH is spot on in outlining that it will end up costing double in the long run!
 
Re: Can you put Wedding Costs into Mortgage without Bank knowing

I agree its a bad idea to borrow for this at all. I'd put off the wedding until I could afford it.
 
Re: Can you put Wedding Costs into Mortgage without Bank knowing

The bank doesn't look for a single receipt. It is the job of the engineer to confirm that each stage of the build is completed to the proper standard and that an amount of the mortgage can be drawn down on the basis of that work. Simple example. It takes one guy 30k to get the house to floor level, another guy may well take 70k - genuinley! Cheap one was on great ground and only needed 3 courses of blocks and little drainage. The second guy needed 7 courses and re-inforced walls and expensive drainage!!! Once the engineer signs off on it - that's all the bank needs! If you wanted to pay for a wedding you could "hide" a few thousand in each stage of the build. Whose to say it cost you 55k to build the roof or 58.5k???? Both figures are "normal"....

Saying all of the above - putting a wedding on your mortgage is not a good idea... CJH is spot on in outlining that it will end up costing double in the long run!

Grand so - thanks. I thought I remembered from buddies of mine that built that they had to provide receipts to the bank for works done but don't have first hand experience so can't comment (and probably shouldn't have !) Also, in the house-buy issue, when I was going for approval in the summer, the bank wanted the "sale agreed" price so they calculate the LTV amount from that - again, other procedures may apply for other folks. Looks like I was wrong on both counts!

Sprite
 
We are hoping to build in the near future - Can you incorporate 30-40 K into the mortgage or do the banks look for receipts for every cost on the build. i.e. if the house was going to cost 280K , we will look for a 320K mortgage and with the extra money pay for the wedding and other costs (8K loan at a higher interest rate to pay off). Can this be done?

Quite apart from the being able to do this - it is very foolish to take out (very) long term debt to finance (very) short term expenditure.
 
Re: Can you put Wedding Costs into Mortgage without Bank knowing

I thought I remembered from buddies of mine that built that they had to provide receipts to the bank for works done but don't have first hand experience so can't comment
Sprite

I had to provide a detailed costing to the building society before I got my mortgage. This was in 1999.
 
you want to pay off your wedding over the next 30 odd years? Are you sure you really want to do that,

I would not be a fan of expensive weddings. But if someone wants to pay off a once in a lifetime cost over many years, that is fine.

The cheapest way to borrow for your wedding, is your mortgage. You may have a 30 year mortgage, but that does not stop you paying it off long before that.

35,000 borrowed over 30 years at 5% incurs approx 32,500 interest, meaning the wedding will cost 67,500.
Are you prepared to spend this much on one day?

This is completely misleading. A wedding costing €32,500 today, costs €32,500 whether you pay for it in cash or through borrowing.

Look at it another way, if you buy a house today for €200k on a 20 year mortgage, it still costs you €200,000. I have never heard of anyone in that situations say "I paid €350,000 for my house".

I am glad to see that you did not put a "€" sign in front of the 67,500. Because what is that 67,500? It's a completely artificial sum of 4,000 of 2008 euros , with 4,000 of 2009 euros etc. You cannot treat a € paid today with a € paid in 2035 as equal.


Brendan
 
Hi,

If you're building -the will give you a mortgage based on the land value and the house you are hoping to build - but they might asked for you to go fixed price rather than direct labour and the might put this into one of the conditions of the mortgage they loan you. With regards to the wedding - up to yourself but borrowing that extra money would go a long long way on finishing your house - I know we built our own and a new build just absorbs money - so my opinion for what it is worth by all means try and get the mortgage for your new build but use every penny you can for it and enjoy your house for many years to come - the wedding can be downscaled - you will be a long time paying of that extra 30 or 40 grand for the sake of 1 day whereas put it in to your house and you'll enjoy it for along time.

Best of luck with your decision.

Angela59
 
Bear in mind, you can only claim mortgage interest relief on the proportion of the mortgage which is for the house.
 
I would not be a fan of expensive weddings. But if someone wants to pay off a once in a lifetime cost over many years, that is fine.

I agree. When I first read this post, I was just waiting for everyone to chime in telling the OP how insane they were for funding their wedding through their mortgage. Surely this is the OP's decision and not part of the advice they were looking for.

Best of luck on the house and the wedding!
 
Re: Can you put Wedding Costs into Mortgage without Bank knowing

Grand so - thanks. I thought I remembered from buddies of mine that built that they had to provide receipts to the bank for works done

Had clients who borrowed from Ulster Bank and that's exactly what they had to do - unusual, mind you
 
We did it 10yrs ago when weddings were a bit cheaper. Had the theory that if marriage lasted as long as the mortgage then it would be worth it :D.
 
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