Equity Release - Do you have to give a good reason for requesting?

[maggiethecat]

Would like to apply to current lender to release significant amount of equity from property although I will be staying well within the required loan to value ratio.

I expect that they will want to know why I need the money. Do you know if they will only lend for specific purposes eg home improvement or is this something that they are not too bothered about?

We are currently remortgaging -is this what you mean by equity release?-and my broker said that they like to know that the money is going to be invested well ie on home improvements as opposed to a holiday

Whether or not they actually use your answer to determine loaning the money I don't know, although I imagine it's a factor

We borrowed a small amount as an additional loan for home improvements and declared it as such, but were never asked for proof it was carried out. It was though! My brother borrowed some additional amount to buy a garage that was close to his flat. The money came through but he never bought the garage. No idea why.

Lol cuckooclock you post just made me laugh (the bit about your brother!) no idea why

But it's true they would never check

Yes Jetset - remortgaging.

I suppose as long as the property stands as adequate security against total borrowings then they might not be too bothered.

I don't think they're too bothered. I've remortgaged three times in the last 10 years, twice borrowing more money in the process. First time it was to build an extension. Second time to replace windows. But as the equity in the house was well over 75% on each occasion, there were no questions at all.