Thank you for replying.
Yes, they did ask for a valuation, recommended a valuer who I used and there is no problem with the LTV. It is 40%.
Neither is there a problem with my salary. I could be approved for more if I wanted it.
The difficulty is that they want to advance the first bit...(the bit I want to pay the personal loan) in one part incurring solicitor's fees etc.
Then they want to release the major amount I want to borrow....(and draw down in stages)... as a separate loan again...incurring another set of fees from solicitor.
This does not cause a MAJOR hassle for me...I can wait to pay the personal loan....but I don't understand their need for all the builders stuff before they can fully sanction the rest of the loan. Surely if I want to use my home as security to buy ANYTHING AT ALL it is not really their business. All they need to concern themselves with is whether they will be repaid.
My question is whether all lenders operate like this or whether another lender would sanction a loan before architect plans, planning permission etc IN ONE so I would only incur ONE set of legal fees. Then I could draw down the amount of the personal loan now and the rest in payments as the builder wants it.
My last point is that had I been short 40% of the value of the house and looked for a mortgage of that amount as I was buying, NIB would not have had a difficulty as the 2 fundamentals....ability to pay and LTV.... were in place then as they STILL are NOW.