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Mortgage and Retention ? ECOLOGY MORTGAGE


LouiseO
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Hi. 

 

We've just had a mortgage offer from ecology mortgage for our self build home.

In the special conditions they say that 

 

' Subject to a retention of £32,000 to be released in stage payments upto 80% of increased valuations as the work progresses. 

 

Release of the retention may only be claimed upto a maximum of 24 months after the advance has been made '

 

 

I'm probably being really stupid but I don't really understand. 

 

Does this mean we won't be able to have the 32000 until it's completed?( we don't have that amount of our own savings to complete the build )

 

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It means they release the funds depending on the added value of the work done when you request the money. It's an arrears mortgage, i.e. you'd get foundations, slab etc down, valuer would come out, value the work at £10k, then you'd draw down £8k of the approved loan. 

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