Increasing your mortgage – getting a further advance

Increasing your mortgage – getting a further advance

If your home has increased in value since you bought it, you could borrow a further advance from your mortgage lender. Find out when this may be a sensible thing to do, but also when it should be avoided.

Increasing my mortgage – what is a further advance?

A further advance is taking on more borrowing from your current mortgage lender.

This is typically at a different rate to your main mortgage.

This route can make sense if:

  • Your lender’s further advance is competitive
  • You don’t want to remortgage or switch lenders.

You can spread your payment over a long term and your interest rate should be lower than a personal loan.

But always check the market to see if you can get a better deal before committing.

When a further advance might make sense

There are two situations when a further advance might be suitable:

  • To fund home improvements
  • To raise a deposit for a second property, perhaps as a buy-to-let investment
When re-mortgaging could be an option

You could also switch to another mortgage lender and increase the sum borrowed.

But this is only suitable if you can save more than you might pay out in application fees to the new lender and early repayment charges for leaving your existing lender.

Remember you might be able to get a better deal elsewhere and lenders often offer the best deals to new customers, so shop around first.

You’ll still have to go through the same strict affordability checks looking at income and outgoings when going to a new lender.

LEGAL STUFF

YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE.

Massey Divall Financial Services are an appointed representative of The Right Mortgage Limited which is authorised and regulated by the Financial Conduct Authority.

The Financial Conduct Authority does not regulate most buy to let mortgages.

The guidance and /or advice contained within this website is subject to UK regulatory regime and is therefore targeted at consumers based in the UK

Conveyancing isn’t regulated by the Financial Conduct Authority.

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