Lender asking for property details planning to buy from funds raised from re-mortgage previous property

[mann2000 0]

Hello Hubbers,

Hope you are well and safe

I am after advice on one of the terms on the Mortgage offer from the lender

At the start of the remortgage the lender asked what i will be doing with the funds raised (Property A was purchased using personal savings)

My answer was to purchase another property B, so the lender asked for details of this property B planning to purchase which i gave

Now In the Mortgage offer issued, the lender has instructed the Solicitor to "Ensure that the capital raised from this remortgage will be used to purchase this property B mentioned".

Question to Hubbers is has any body come across a lender who asks for & wants to ensure that the capital raised is used to do what was stated at the start.

Any advice is apprecaited.

Best Regards

Mann2000

[Adam Hosker 67]

It is a common issue Man2000.

Your mortgage broker has recommended the wrong lender for your circumstances unfortunately.

Some lenders have restrictions on what you can do with the equity that you release with them.
Other lenders require an onward purchase as evidence, often only releasing the funds once the other is ready to exchange.

Your broker can recommend other lenders though, without such tight restrictions.

Hope this helps.

[mann2000 0]

Thanks Adam, useful feedback