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Your home may be repossessed if you do not keep up repayments on your mortgage. Think carefully before securing other debts against your home. Borrowing over a longer term can mean paying back more in total.
A further advance is extra borrowing from your existing mortgage lender, added on top of what you already owe, without moving your mortgage elsewhere. It’s one way to raise money against your home while keeping your current deal and lender for the rest of the mortgage.
How does a further advance work?
You ask your existing lender for extra borrowing, and if it agrees, the additional amount is usually added to your mortgage, either on the same rate and terms or on a separate part of the mortgage with its own rate. Because it’s new borrowing rather than a like-for-like switch, lenders normally assess it more fully than a product transfer.
| Typical position | |
|---|---|
| Who with | Your existing lender |
| New borrowing | Yes |
| Affordability assessment | Usually required in full |
| Credit search | Often a hard search |
| Valuation | Often needed, to check there’s enough equity |
| Loan to value | Rises, since you’re borrowing more against the same property |
What does a lender assess for a further advance?
Much like a full mortgage application, a lender considering a further advance typically looks at:
- your income and outgoings, to check the extra borrowing is affordable
- your current mortgage payment record, including any arrears
- your wider credit file, for entries such as CCJs, defaults or missed payments
- the loan to value (LTV) once the extra borrowing is added, since more debt against the same property raises your LTV, as explained in our guide on how LTV affects a bad credit remortgage
- an up-to-date valuation of your home, to confirm there’s enough equity to support the extra amount
How long does a further advance take?
Because it involves an assessment similar to a new mortgage application, a further advance can take a few weeks to arrange, depending on how quickly you provide documents and how busy your lender is. It’s often quicker than a full remortgage to a new lender, since your existing lender already holds some of your records, but it’s rarely instant.
What is a further advance used for?
Common reasons people ask for a further advance include home improvements, raising a deposit for another property, or consolidating other debts. Where the purpose is to pay off unsecured debts such as credit cards or loans, those debts become secured against your home, and a longer mortgage term can mean paying more overall even if the monthly cost feels lower. Our guide on remortgaging to consolidate debt sets out the trade-offs.
Further advance, second charge mortgage or remortgage: how do they compare?
All three can raise extra money against your home, but they suit different situations.
| Further advance | Second charge mortgage | Remortgage (new lender, borrowing more) | |
|---|---|---|---|
| Who with | Your existing lender | A different lender, secured behind your main mortgage | A new lender, replacing your whole mortgage |
| Affects your main mortgage rate | No, usually a separate part | No | Yes, the whole loan moves to new terms |
| Early repayment charges | Only if it disturbs your main deal | Avoids disturbing your main mortgage’s early repayment charge | Can trigger one if you leave your main deal early |
| Best suited to | Modest extra borrowing your lender agrees to | Borrowing when leaving your main deal would be costly | Borrowing more alongside getting a new overall rate |
Our guides on what a second charge mortgage is and remortgage or second charge mortgage go into the second charge route in more depth.
Does a further advance change your existing deal?
Not usually. A further advance is commonly set up as a separate part of your mortgage, sometimes called a sub-account, with its own rate and term, sitting alongside the rate on your existing balance. This means the extra borrowing can be arranged without disturbing the deal you already have, and without triggering any early repayment charge on your existing balance. Our guide on early repayment charges explained covers when a charge would apply if you were leaving your main deal instead.
What if your lender says no to a further advance?
A lender can decline a further advance, for example if the extra borrowing would push your LTV above its limits, if your income doesn’t support it, or if you’re behind on your current mortgage. If that happens, options can include a second charge mortgage with a different lender, or a remortgage to a new lender if you’re also open to changing your main deal. Our page on releasing equity with bad credit covers raising money against your home more broadly.
What changes if you have adverse credit?
A further advance usually involves a fuller assessment than a product transfer, so adverse credit is likely to be scrutinised in a similar way to any new borrowing application. A CCJ, default or mortgage arrears can affect whether your lender agrees, and how much it’s willing to lend, though your existing lender already knows your payment history with them, which some see as helpful context.
If a further advance isn’t offered, or you’d rather not add to your existing mortgage, a specialist adviser can compare it against a second charge mortgage or remortgaging with a lender open to your circumstances. If the purpose is to manage other debts, get free, impartial advice from MoneyHelper, StepChange or National Debtline before taking on more borrowing secured on your home.
Frequently asked questions
Is a further advance the same as a product transfer?
No. A product transfer is a new deal for the same balance with your existing lender, while a further advance adds extra borrowing on top of your current mortgage. You can sometimes arrange both together, but they're assessed differently. See what a product transfer is.
Will my lender always agree to a further advance?
No. It depends on your income, outgoings, the equity in your home and your lender's own criteria. A lender can decide not to offer one, for example if you're behind on payments or the extra borrowing would push your loan to value too high.
Do I need a solicitor for a further advance?
Sometimes, though it's often more limited than for a full remortgage, since your existing mortgage isn't being redeemed and replaced. Your lender will tell you what legal work, if any, it needs before releasing the extra funds, and some further advances need little more than updated paperwork.
Can I use a further advance to pay off other debts?
You can, but it turns those debts into borrowing secured on your home, and a longer term can mean paying more in total. Read our guide on whether to remortgage to pay off debt before deciding, and consider free debt advice first.