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
Before you apply for a further advance
Before you consider applying for a further advance, you should make sure that all of the following apply:
- You’ve got a good credit record
- You feel comfortable with the additional monthly payments and you’ve worked out that you can afford them, and
- The value of your home has increased beyond the mortgage amount you originally borrowed – known as having equity in your property.
Borrowing for other major purchases
If you’re looking to pay for something expensive other than home improvements or investment property start by looking at your options where the loan is not secured against your home.
When remortgaging 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. By using us you immediately have access to hundreds of lenders with just one call!
