Residential policy
We offer additional borrowing to our existing mortgage customers who wish to release additional equity without remortgaging.
Standalone additional borrowing, opening a new additional mortgage account
Your customer can simply apply for an additional mortgage account, selecting a product from the on-sale range. This new borrowing will have its own account number, separate direct debit collection for monthly payments as will receipt individual account communications such as annual statements.
As this borrowing is against a separate account, the borrowing can be taken across a different term.
Increase borrowing on the existing account as part of a product transfer
If your customer is within 4 months of rate expiry or on a managed variable (e.g. SVR) the additional funds can be requested as part of a product transfer application. A product transfer application with additional funds can still be made outside of the 4 month product transfer window but an ERC may be applicable.
Total borrowing will be on the same product deal and can be selected from the existing customers product transfer range. There is no minimum value of the additional borrowing requested.
It is possible to vary the term and repayment type of the existing loan agreement as part of the application, subject to lending criteria.
Our additional borrowing has the following key features:
- New business maximum LTVs apply to additional borrowing transactions
- Existing mortgage must be up to date and the application must meet current lending criteria
- Affordability will be based on total mortgage borrowing
- Maximum term is 40 years
- Mortgage term must exceed the end date of the selected product