Remortgaging - what do banks look for

[MidlandsBase]

I am thinking of remortgaging and releasing some equity for a business. I am reluctant to tell my bank I am using the equity for a business as I will also be approaching them for a small business loan as well.

My only question is - and hoepfully the tread doesn't break off into the whys and wherefore's to this approach - is what information does a bank look for in relation to the reason for equity. For example, if I stated that I needed the money to purchase a second property abroad would they look for the deeds to this second property? My LTV would increase from 19% to 58%.

 

[LDFerguson]

I don't recommend lying to your lender. There are lenders out there who don't ask the purpose of the released equity, once the financial details are okay and the equity is sufficent - from your post the equity part will be fine.

Liam D Ferguson
www.ferga.com

 

[archtech]

i'm remortgaging at the moment to get some house improvements done. as far as i know they don't ask what exactly you need the money for (it could be home improvements/holiday/pay off other loans), but this may differ from lender to lender. the list of information the lenders require is something like the following :

6mths bank statement, 3 recent payslips, a utility bill in your name, last P60, a statement of mortgage repayments and outstanding balance, a statement of any other loans and a letter/form from your employer sating salary - although if you're self employed you may need extra info.