Taking risk aversion to the next level

We app**** for a further bond on our home loan.We wanted to do further renovations on the house, but since this wasn't a building loan, it supposedly did not matter what the purpose was, as long as there was enough capital available to support it. It took a month to approve, but with very stringent conditions. Before they pay out anything,an inspection is to be done on finished house.Apparently the bank's argument is that they might not recover their money if renovations are not done properly. The house was valuated by the bank's own valuator at R3.5m and the request is to increase the loan to R2m.How is that a risk to the bank?How badly can you stuff up new flooring and kitchen/bathroom?The other argument from the bank's side is that the house is 'uninhabitable' while the renovations are going on (the valuator was there when flooring was removed!) Is FNB going to make all new home loan customers sign a document that if they ever plan to do renovations they must first get FNB's permission since it is their asset?Or must all clients complete renovations before they apply for money to do said renovations! I have complained (ref 68KTSGIM) but so much for FNB's '2 day response'.