I asked KBC this yesterday as I am in the process of switching and wanted a little extra to cover the breakage fee from BOI.
They told me they wouldn't let me borrow the breakage fee and I could only borrow the amount owed.
I asked could I if I wanted to do home improvements and they said I'd have to reapply and it would be drawn down through the solicitor when I provide invoices, receipts,etc
Was wondering does this differ from bank to bank or do some banks allow you to borrow more than what's owed?
My LTV is under 60% so I had hoped I could use the equity in the house
did you include the extra in your initial application to KBC?
If I want to borrow say 300K to buy a 600K house and meet their criteria for a mortgage, why would it be treated differently if I wanted to borrow the same amount to pay off an existing 250K mortgage on the same house and have 50K leftover for renovations. For KBC it's exactly the same proposition, it seems weird.
I assumed putting the cost of breakage on top of my existing mortgage wouldn't be a problem. I applied to borrow the balance of my mortgage and what I estimated my breakage fee to be. When I got my approval in principal, it was only for the balance of the mortgage.
Agree with Monbretia's comments above
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