If you already have your mortgage with us or are considering moving your mortgage to us, you may be able to borrow additional money on top of your current mortgage.
Borrowing more for home improvements can help increase the value of your home or energy saving improvements, such as double-glazing or a new boiler could save you money as well as add value. Any additional funds will be secured against your home, so you should fully consider this before applying for additional borrowing.
What can you borrow?
You may want additional borrowing to fund home improvements, raise money to buy another property or to consolidate your debts.
Home improvements is the most common reason for borrowing extra money. With a home improvement advance, you can attempt to increase the value of your property by redeveloping existing rooms such as upgrading your kitchen or bathroom. You may be looking at making your home more suitable to your changing needs by extending and adding extra living space which may be a cheaper alternative to selling and moving to a new home.
Either way, you can borrow up to 95% loan to value from us to complete home improvements. Where the improvements exceed £20,000 or involve structural alterations we will however limit this to 75% loan to value at each stage of the works.
You will need to provide us with estimations for the work needed to be completed to support your application and re-inspections may be required at different stages.
Capital raising is a form of additional borrowing that will allow you to borrow more to fund an investment.
We will lend you up to 75% loan to value to fund the purchase of another property. Where you are looking to capital raise to buy a partner out of your existing mortgage we will consider up to 90% loan to value.
Debt consolidation can be beneficial as it will provide you with one loan to pay off any outstanding debt, this means that rather than making multiple repayments to different companies you will only need to make repayment to us. You should be aware however, that consolidating debt to your mortgage may result in you paying additional interest depending upon the repayment term you choose.
For remortgage applications, we will allow you to borrow up to 75% loan to value for debt consolidation, however, the amount you are consolidating cannot be above 10% of the current value of your property or £25,000, whichever is lower. When we assess your application we will include the normal monthly repayments that you are currently making, when considering affordability. To support your application for debt consolidation we will need information from your latest credit card statement(s) and loan agreements.
We will not allow you to borrow more to consolidate tax, VAT, gambling debts or business debts and you mustn’t have any previous history of debt consolidation.