Can we raise money against our current home to buy a boat?

Posted on 10 December 2014 by Catherine


We live in a house valued £500K that has a £74K mortgage. We would like to raise another £130K in order to by a boat so a total borrow of £204K. We don't have other debt, we have a joint income way in excess of the lenders criteria and have impeccable credit rating. However, we've just been turned down by a lender on the basis that they don't like what we'll spend the money on. It would apparently be fine if we were spending the extra on something like travel or a lavish wedding. Is this normal? It seemed very odd that they would lend money that would basically go down the drain (wedding or travel) but wouldn't for something that would be tangible and resellable asset. We are bemused and would value advice on which lenders have more logical lending criteria. Thanks.

Catherine,

You are right it does seem odd, and not every lender will have the same view, as each lender tends to have little nuances of criteria make them all different. On the face of it this would appear to be a relatively straight forward thing to do, and I would be confident that we can find you a lender who would be happy with your proposal.

If you'd like to discuss your options in more detail, then please contact one of our consultants on 0344 346 3672 and they'll be able to give you an idea of how we can help.

Regards,

Simon

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