Extra mortgage money.

[vidjourno]

I'm buying a house with my partner.  We've got a mortgage agreed with a lender for an amount that is "less 10%" of the value of the property.  (the 10% being our deposit).  However, we have now discovered that we need some more cash to floor and tile the property.  Is it possible to free up this additional amount of money (about �5000) by increasing the mortgage loan - or do we need to go and get a seperate loan for the �5000?

[Mrs_Pegasus]

Couple of things to bear in mind.

If you borrow more than 90% alot of lenders are asking for an indemnity insurance which can cost �1500 for a �100,000 property (approx) figure.  If you reduce your deposit then this will obviously increase your montly payment and you will be paying interest on that additional amount for the next 25 years.

Be careful about borrowing the money before your mortgage has gone through because it will be used to reduce the amount you can borrow (of course if you are borrowing a lot less than you can then it shouldnt impact)

Personally, I would take a loan a few months after you have moved in and are comfortable with the repayments.  �5k sounds an awful lot of layout for tiles and flooring, can it not wait?