Additional borrowing on your mortgage means borrowing more money and increasing the overall size of your mortgage. You might consider doing this for a number of reasons including funding for home improvements, large purchases or debt consolidation. You can choose to take out additional borrowing using any of the following methods:
Remortgage
Remortgaging is when you chose to switch your current mortgage to a new mortgage deal/rate, this can be done with your current lender or a new lender.
You might choose to remortgage if you’re looking for a better deal than with you’re current lender, or if you’re planning to borrow more money using your property as collateral.
The remortgaging process usually takes between 4 and 8 weeks. If you’re considering remortgaging your home but you’re unsure where to start contact an advisor today for free, independent advice.
Further Advance
A further advance involves borrowing more money from your existing mortgage lender. This additional borrowing is typically offered at a different rate than your current mortgage.
Using a further advance for additional borrowing makes sense if you’re looking to fund home improvements or require additional resources towards a property deposit.
Your repayments can be spread long-term, and the interest is usually less than that of a personal loan, however, it’s important to remember that the loan is linked to your property, so should you fail to make repayments you risk forfeiting your property.
Speak to an advisor
If you need advice regarding additional borrowing on your mortgage then contact an expert at Lucas and Clash, we offer free, independent advice and can help you decipher the financial jargon.
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