Mortgage re-approval for extra funds

[Mur2006]

Hi folks,

I haven't made the call to lender yet as i wanted to get some backgroupd info to what might be involved here.
I'm doing a self build at the moment and have a mortgage of 350,000. At this stage after reviewing budget and whats been spent and whats in reserve, its very much looks like i'll need another 50k to my disposal. With regards being able to make repayments with extra 50k, this shouldn't be a problem.
But i have heard some horror stories about getting re-approved process for extra funds once you've done your initial agreements for aplied amount.

I'd very much appreciate if anyone could open my eyes to the process and what might be involved here?

Thanking you
Mur

 

[Hel]

Firsly, you may find that you will get more replies if you post in the mortages/homebuying section

But i have heard some horror stories about getting re-approved process for extra funds once you've done your initial agreements for aplied amount.

I don't know what exactly you mean by this. As long as you have sufficient earnings and the value of the house is ok, there should be no reason why you can't borrow more money.

Have you drawndown part of your mortgage yet? If not, you can just apply to get a new loan offer issued for a higher amount. If you have already started drawing stage payments you will need to advise your lender that there has been a cost over-run. They will probably issue an additional loan, like a top up. Depending on when you applied for your original loan, you may have to submit up to date payslips, current account statements along with a letter from your supervising architect/engineer confirming that there has been a cost over-run and a breakdown of the additional funds required.

 

[Mur2006]

Thank you Helen, i was just concerned that i'll have to go through the whole solicitor step again.