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Additional borrowing from Natwest..any experiences?

(6 Posts)
tropical1 Fri 15-Jan-16 14:58:44

Hi,
We are going to apply for additional borrowing from Natwest to do some home improvements.
It will take the ltv from 73% to 86%. We have passed the affordability assessment and next step is to take in 3 months payslips and bank statements.
Now, although we can definitely afford the extra payments, neither of us save anything and my DH has an overdraft. He thinks we should spend 3 months improving our accounts and then apply, but I want to do it asap.
Does anyone have any happy endings in similar situations with Natwest? I've heard they are fairly lenient!
Thank yousmile

WhoKn0wsWhereTheMistletoes Fri 15-Jan-16 15:06:54

No experience, but I suppose the obvious question is if you can afford increased payments but aren't currently saving where is that money going to come from, unless one of you has just had a big payrise or similar. But that should be covered by the affordability checks I guess.

tropical1 Fri 15-Jan-16 15:19:49

I know what you mean, I paid off two loans last year & to be honest, have just been frittering that money away on going out, takeaways, etc etc. I'm not a saver, never have been... maybe it's timeto start!

Needmoresleep Fri 15-Jan-16 16:47:54

Sort your spending out before taking on new loans. If the economy does falter, as widely predicted, interest rates could rise and house prices fall. This may be a real shock to those used to paying historically low interest rates on mortgage borrowing.

I think your DH is right. First sort your finances out and start saving the equivalent of the extra interest on the additional borrowing, and perhaps a bit more to allow for a rise in interest rates.

WhoKn0wsWhereTheMistletoes Fri 15-Jan-16 17:19:04

I tend to agree, give yourself a trial period saving the equivalent amount that you will be paying extra on the mortgage plus a bit more. It might not affect the bank's decision, but it will have two benefits, firstly that you know you can definitely do it before you are committed and secondly you will have a cushion for unforeseen circumstances.

tropical1 Fri 15-Jan-16 18:52:05

Thank you for your advice, I'm just impatient I think!
I will put the money into a savings pot for a few months I think and then try to persuade him

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