Top up existing mortgage - cover letter reasons

We're currently looking to top up our mortgage to free up some cash for work on a second house (which is a renovation project). Has anyone done something like this before and if so what reasons should we give in our cover letter for the cash. Is it acceptable to the banks to top up a mortgage on one property in order to use the cash towards work on another property?

No simple answer to this one as it depends on lots of variables - the lending policies of the individual bank, the "strength" of your application, the value of the properties in question etc.

As a very general rule, if you're not topping up your mortgage to a high LTV (like 90%) and your income is not being stretched to qualfy, your lender shouldn't be too bothered by the purpose of the borrowing.

Liam D Ferguson
www.ferga.com

Don't see what the problem is if the LTV ratio and your income multiple falls within the banks lending criteria. Many people have released equity to buy investment property so why not for renovation of a second property?

Thanks for the replies folks, sounds like we're ok so.