Does not matter if for house reno or etc..u can withdraw from ur acc 2 as long as ur s&p is not more than 3 years from date of withdrawal application..
u can withdraw all ur acc2 as long as it does not exceed the difference from loan amount & house price + 10% of house price

Yes, u can do what ever u like with the money as long the repayment is in order

There are 2 option to withdraw out for loan repayment or settlement purpose from Acc2

Option 1:

Withdraw all from Acc 2 and directly bank in to loan account to offset. (KWSP will directly bank in). If u r on full flexi, then u cannot touch the money since it is in loan acc and not your saving acc. If u r on semi flexi, once transferred to loan acc, then u can call up bank to transfer out to ur saving acc with a standard charges

Option 2:

Withdraw from Acc 2 according to your loan monthly repayment amount into your saving account. Says u have rm10k in Acc 2, and your monthly repayment is rm1k, then u can apply for 10 months auto debit into your saving acc directly. No more loan acc for this.

I had chosen option 2 because im on full flexi.