If you have an endowment mortgage (or an endowment or 'whole-life' policy which is not linked to a house purchase scheme) the advantage that you enjoy over repayment mortgage holders is that the insurance company may be able to lend the funds themselves, which is obviously a great asset if funds in general are scarce.
The insurance company may well expect you to take out an additional policy to cover the loan. Very often this is a 'non-profit' endowment policy -which is as gloomy as it sounds.
Non-profit policies generally provide poor value for money, particularly in inflationary times; all they do is to pay off the mortgage when it reaches maturity -or at death if you die earlier -and there is never any surplus for you.
They should never be considered in connection with a main mortgage (and consequently have been ignored in Section 6). For an improvement loan, however, what it means is that you are effectively getting a more expensive option. You may feel it is worth it if it is the only source of funds available to you.
If you approach another lender rather than your present one, they may also seek to have some form of security on your house. You will have to get your original lender's formal consent to this; but, assuming you have plenty of 'equity' in the house (for example, you have a £125,000 mortgage but the house is worth £145,000), then there is usually no problem over obtaining this.
Now that the MIRAS system of collecting tax relief has come into operation, prospective borrowers have to sign a form declaring that the advance being made to them is for a purpose which will qualify for tax relief under existing legislation.
If you make a False declaration which is found out at a later date, it counts as tax evasion and you'll be dealt with severely by the Revenue.
Where to find finance Building societies and banks
Your first port of call for the extra money you need should be the building society with whom you have your mortgage. In 2012 around 0.12 of all advances made by building societies were for improvements to existing property rather than the purchase of new homes.
A . . .... see: In the future - Paying the money back
At Commercialise Yourself you can compare mortgages using our repayment calculator, look for special offers for first time buyers or for 95% loan to value mortgages and see the most popular choices, Nationwide, Accord etc, we now even have a buy to let section for the brave or heart or strong of pocket! You can send us an email if you want to know more about mortgages and what we do and we will get back to you as soon as we are able. firstname.lastname@example.org
Even if you have no proof of income, poor credit rating or facing repossession of your home, we can normally say YES (even if the high street lenders have said NO)!
Think carefully before securing other debts against your home. Your home may be repossessed if you do not keep up repayments on your mortgage. The overall cost for comparison is 7.9% APR. The actual rate available will depend upon your circumstances. Ask for a personalised illustration. There will be a fee for mortgage advice. The precise amount will depend upon your circumstances but our average fee is 2.36% of the loan value. We are authorised and regulated by the Financial Services Authority for regulated mortgage and non-investment insurance contracts.