There are lots of reasons you may want to borrow more on your mortgage, from improvements to large purchases. It allows you to borrow a lump sum of money, which will be secured against your property.
With so many options to consider, it can seem very confusing. So, to help you out we've answered some of your most common questions. For more specific advice about the options available for your circumstances, why not get in-touch with one of our friendly advisors.
Further borrowing means you'll be borrowing more money from either your existing or a new mortgage lender which will be secured against your property. There are many reasons you may want to borrow more, some include funding home improvements, raising money to buy another property, divorce settlement or debt consolidation.
You can apply to borrow more but you will need to demonstrate that you will be able to afford the new repayment amount that will be needed to pay off your mortgage in the agreed term. You will also need to be able to afford the new repayment if interest rates rise or there is a change in your circumstances. It also helps if you have a good credit record and haven't missed any mortgage payments.
When you apply for additional borrowing on a mortgage, the documents your lender requests from you may vary, however as a minimum, they are likely to include:
– Proof of income (bank statements and payslips)
– A recent credit check
– Home improvement quotes or proof of any debts being consolidated
– Proof of your ID
– Your name appears on an electoral register
We will search the market for the best rates, sorting out all the admin and form-filling, so you can focus on your first house move.
We communicate – rather than wait for you to contact us, we’ll get in touch with you to make sure you’re happy with the cover you’re receiving, the payment plan in place and what other products you might benefit from.
Our initial advice is completely free. However, we typically do charge a fee of £295, which is only payable on offer or completion.
Our simple mortgage calculator can help you to calculate your LTV (loan to value) and what your likely mortgage repayments will be. Remember, you will need to allow for other costs such as stamp duty, solicitor fees and moving expenses.
There will be additional fees that you'll need to include within your house purchase budget
Examples may include: Solicitor fees, Broker fees, Conveyancing fees, Mortgage fees, Stamp duty.
If your mortgage is a fixed rate, your payments will remain the same for the deal period, but could increase at the end of the deal period.
For a more detailed summary of your house purchase costs, it's advisable to discuss the options available to you for your circumstances with a qualified mortgage advisor.
To find out more about mortgages, personal insurance, business insurance and protection or to discuss the options available for your circumstances, contact our team of advisors
