looking to borrow extra on your existing mortgage?
Is there a home improvement you’ve wanted to do for a while but there just never seems to be enough room in your household’s budget? Do you need money for school fees, a new boiler or new car? Regardless of whether you need additional funding for a home renovation, a family expense, or fancy a new car purchase, a Second Charge* Mortgage or Further Borrowing on a mortgage could be viable options for you. Allowing you to borrow money while leaving your current mortgage alone, the new mortgage is secured against your property. But knowing which type of mortgage and interest rate to choose can be confusing – that’s where we come in.
When it comes to Further Borrowing, and borrowing additional funds, mortgage lenders will carry out affordability checks to ensure that you can afford the mortgage loan before they agree to lend you any money. Mortgage lenders will look at your income, bank statements and spending habits, as well as conduct a credit check. Taking all this into account, the mortgage lender will calculate whether you’ll be able to afford the mortgage loan and keep up with the payment schedule that’s been recommended.
*Second Charge mortgages are arranged on a introduction only basis.
FAQ
As a further advance is secured against your home, interest rates are often lower than on other forms of short-term borrowing, such as a personal loan. And if you don’t want to switch mortgage lenders – perhaps because you are tied into your current deal or just happy where you are – it can be an ideal borrowing solution.
You’ll still need to pass your lender’s affordability checks to be approved, though, and will usually have to explain why you want the extra cash.