Borrowing more.

This is where an existing mortgage borrower is looking to borrow additional funds. Whilst you can’t simply borrow more funds on your existing mortgage, an additional borrowing mortgage works as a “top up” to the existing mortgage balance and will almost certainly have a different interest rate.

Because you are borrowing more your mortgage lender would need to carry out the usual checks and affordability assessments, to ensure you can afford both your existing mortgage and the additional funds. You will be subject to maximum loan to value ratios (meaning you can only borrow up to a certain percentage of what the property is worth) and will usually have to pay certain fees when arranging your additional borrowing mortgage, such as application and completion fees.

Remortgaging to another lender could be an alternative to additional borrowing, however if you change your mortgage lender before your current mortgage deal reaches its end date you may be subject to penalty charges, including an Early Repayment Charge (ERC). This is usually calculated as a percentage of the original loan amount or the amount being repaid. You should check your original European Standardised Information Sheet (ESIS) which will give full details about any ERCs or penalties you may incur if you exit your mortgage deal before the set tie-in period.

Once you know the financial consequences you will need to carefully consider your options and may wish to seek the help of an independent financial adviser.

The most common reasons for taking out an additional borrowing mortgage include when carrying out home improvements, such as adding a conservatory, or even to raise a deposit for the purchase of a holiday home or buy to let property.

You may be able to undertake additional borrowing (also known as a further advance) for debt consolidation purposes subject to certain conditions. In this scenario it is important to be mindful of the implications of consolidating unsecured debts against your home, putting your home at risk and potentially increasing the overall cost of repayment. Applications for debt consolidation will be completed on a fully advised basis to ensure that this is right for you.

If you are porting your existing mortgage to a new property, but still need to fund a shortfall, you can usually borrow additional funds to help you do this. This type of application will be dealt with differently to an additional borrowing application, and you will have access to the Society’s standard range of mortgage products.

We will usually have additional borrowing options available for our buy to let mortgage borrowers. Our mortgage finder at the top of this page will show currently available additional borrowing options.

Typically we will have an additional borrowing option for our self build mortgage borrowers. Use the mortgage finder at the top of this page to see what additional borrowing mortgage products we currently have available.