Why would I do this?
A further advance is typically used to fund home improvements, such as an extension.
A further advance from your current lender makes sense to do if your lender has a competitive further advance rate, or if you don’t want the hassle and associated costs of remortgaging.
Home improvements such as an extension will then increase the value of your property and improve the attractiveness of the property to potential buyers.
What if I don’t want to make any improvements?
Further advances can also be used to pay off debts, but the risks are very high.
Borrowing further on your current mortgage would mean the additional amount is tied to your property. If you default on your mortgage payments due to the higher monthly cost, then you could lose your property.
You could also end up paying more over the length of the mortgage term, so you must carefully consider all your options before looking to obtain a further advance.
How do I apply?
Applying for a further advance can be done by speaking to an expert mortgage adviser and discussing the options you have available to you.
You must ensure your credit record is good, and you have considered the increased monthly payments before you submit your application.
For advice on getting a mortgage for home improvements, speak to one of our expert advisers who will be able to help you with the next steps.