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Mortgage Advisor & Director
What is a further advance?
A further advance is where you take on additional borrowing from your current mortgage provider.
Typically further advances will be provided on a different rate to your existing mortgage. Even if you aren't interested in moving lenders, it is worthwhile checking to see if you can get a better deal elsewhere; our advisors can help.
When does a further advance make sense?
It may be beneficial to take on a further advance on your mortgage if you are keen to stick with your current lender, and they are offering a competitive deal. You should get a better rate on a further advance than a personal loan, with the ability to spread repayments over a longer period of time.
It is important to understand that the further advance is secured on your home, so it is not recommended to use a further advance to pay off existing debt.
Common reasons for taking a further advance include:
- To finance home improvements or renovations.
- To put down a deposit on a second home, for example on a buy to let property.
Further advance considerations
Before you make your application, it is recommended that you:
- Check your credit record, and make improvements if needed
- Can meet the additional repayment obligation
- Confirm that you have enough equity in your home, that is, that your home is worth more than the original mortgage borrowing.
What are the drawbacks of a further advance?
A further advance will increase your overall borrowing, increase your monthly repayments and mean that you have more overall debt to repay over time.
Further advance or remortgage?
Remortgaging presents a realistic option for many who are considering a further advance.
Moving to another mortgage provider and borrowing more can make sense, especially if you will not incur any early repayment or exit fees with your current lender. Our advisors can help you to consider the options and help you decide the best route forward. By getting the best deal possible on a remortgage, it may be financially beneficial to move providers.
What are the alternatives?
Away from remortgaging, depending on the reason for the additional borrowing, there may be other options that are more applicable to your purchase.
- Personal unsecured loans will mean that your home is not at risk if repayments are not made.
- Peer to Peer loans via social lenders are another form of unsecured loan.
- For car purchases, car finance may be more applicable.
Our advisors can help you to decide between the options.
How can I learn more?
As a whole-of-market broker, at Teito we have access to deals that are not accessible to the general public, including those from specialist lenders. We have helped many people like you to decide between a remortgage or further advance, and getting the best rates possible.
If you are ready to get started, complete our simple online form today.
Choosing an Adviser
Selecting a qualified and experienced mortgage adviser is of great importance. To choose a suitable adviser, evaluate their qualifications, experience, and reputation, and ensure they are regulated by the Financial Conduct Authority (FCA).
Read reviews from previous clients and make sure they provide a clear explanation of the products and services they offer, as well as the fees and charges associated with them.
