Can anyone tell me if I can remortgage?

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Guest
At present I am building a house. The total number of stages for my mortgage is six of which I have drawn down four. I need more money to finish the house. The Architect will not sign off the last two stages until the schedule is completed ie. 2nd fix electric etc. Is it possible to re-mortgage to release the equity before I have drawn down the last two stages with my own bank or another? If anyone can advise me on this situtation I would be grateful. Thank you.
 
Re: Can anyone tell me if I can remortgage?????

You should be able to top up your existing loan, once there is sufficient equity in the property. The loan offer would have to be reissued to reflect the new building cost. You may also have to refresh your life assurance to cover the new borrowing. Who was your original loan with?
 
Re: Can anyone tell me if I can remortgage?????

Ulster Bank
 
If the total mortgage borrowing when you're finished is less than 92% of the house value on completion with Ulster Bank you should be ok. They would normally look for confirmation of the cost of completion from the architect as well, but it would be in their own interest to have their security (ie your house) in a finished state.

It happens quite a lot in cases of direct labour. In some cases the bank will prefer to approve you upfront for an extra 10% before you start to cover cost overruns. It may mean some more paperwork but you'll get there. Don't panic!

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