Mortgages – Further Advances

Further Advances

Further advances
and secured loans

If you are a homeowner and you need to borrow some money to replace your car, consolidate your finances, or make some much needed home improvements, Kingsway can advise on the best option for your circumstances:

Further advance

If you have enough equity in your property, you can extend your existing mortgage. The loan will usually be offered on a different interest rate and will have its own set of terms.

Secured loan

If, for one reason or another, you cannot get a further advance from your existing lender and you don’t want to change your existing mortgage deal, you could look at a loan secured against the house.

Remortgage

Alternatively, you could also remortgage entirely, especially if your existing deal is on a relatively uncompetitive interest rate.

Case Study:

In 2011 we placed an applicant on a 5 year fixed rate. They borrowed £800,000 on an interest only mortgage for a £1,600,000 house. A few years later, they wanted a further advance of £300,000 to carry out some home improvements. Unfortunately, only they could deal directly with the lender. Although they wanted the additional money to be on an interest only basis, they were told that the full £1,100,000 would have to be on a capital repayment basis, which would have dramatically increased their monthly mortgage payments.

We were able to ask one of our contacts at the bank to get involved and with their influence we managed to keep the original mortgage as interest only, with the additional advance on the basis of a capital repayment.

Call our Further Advance Team on
020 7383 4181