Re-mortgaging to renovate

Hi All,

I hope this is the correct section.

We are thinking of having a house valued at c700k (valued at E1m last year) renovated. We have a low LTV of about 30%. We hope to put about E120k into the house to have it gutted and completely re-done.

Do the bank simply re-mortgage (assuming it's approved) and give you the funds, or will they only allow you draw down in stages as the work is completed and invoices received from builders etc?

Thanks a lot.

The choice is yours. The easiest is just to draw down the whole lot in one pop and manage it yourself.
It will be a brand new mortgage i.e your exisiting one stands and a new agreement will be drawn up for the new money.
That means you dont have to go through your existing channels (although it is the most convenient.
Of course you will need to redo your mortgage insurance and any other benefits (critical illness etc.) that are tied to the value of your mortgage and that is nearly the messiest of all.
I'd be interested to know if you get passed.
I guess a lot will depend on the amount of equity in your house but if your mortgage is signifcanltly lower than 1/2 Million then you should have no issues