A further advance is like a top up of your existing mortgage.
Unlike a remortgage you maintain an agreement with your existing lender. The additional money you want to borrow (i.e the further advance) is agreed and runs alongside your existing mortgage. However, the interest you pay on the ‘further advance’ can be higher or lower than the rate you have in place on your existing mortgage.
A further advance is quicker to arrange because we are working with your current lender and the work of a solicitor is rarely required. The difficulty with a further advance is getting it to coincide with your existing mortgage arrangement as it would have been agreed and taken out at a different time. This makes things slightly more difficult as it means you have to be mindful of when each fixed term arrangement comes to an end to avoid defaulting on to the lenders standard variable rate.
If you are considering raising equity from your home for home improvements, debt consolidation or for a major event in your life feel free to click here to contact us to arrange a free 15-minute consultation to learn what is possible.
Please Note: The Mortgage Xchange is a partner of Scott & Goose LLP who are directly authorised by the Financial Conduct Authority under reference 661183. Your home may be repossessed if you do not keep up repayments on your mortgage.