Fixed interest rate for one off house build

[whackin]

My brother will be building is house soon and is mortgage approved to 200K. He expects that the cost of the house build will be less than 160K however. He has been told by his broker that if he fixes his interest rate he will need to draw down the full 200K and the lets say extra 40K can't be repaid until after the fixed term of interest. This sounds odd to me. He is keen to take advantage of low fixed rates at the moment but this is putting him off.

Any advice?

 

[Boros]

this seems strange as banks will normally stop this from happening as they currently don't want to lend to anyone. They have stoped cash back schemes since the credit crunch.

 

[whackin]

That's what I was thinking! Thanks!