Your questions answered
How much extra money can I borrow?
Standard Residential and Self Certification customers can borrow up to £500,000 extra as long as this does not exceed the maximum Loan to Value (LTV) for that product and your application meets our underwriting requirements. This is the same for Buy to Let customers, however, your rental income must still meet our rental cover criteria - please call us on 0845 300 8000* for details.
What is meant by Loan to Value (LTV)?
The Loan to Value (LTV) is the amount of your existing loan as a percentage of the value of your property. For example if your outstanding mortgage balance is £75,000 and your property is worth approximately £150,000, your current LTV would be 50%.
Is there any restriction on what I can borrow the money for?
We will only agree further lending for improvements to your home or property, or to allow you to assist a close relative to buy their first home. Debt consolidation, general capital raising, the purchase of additional property for your personal use or investment use are not permitted.
Will I have to get my property revalued?
If you haven’t had a valuation in the last 6 months and the House Price Index (HPI) indicates that your proposed total borrowing will result in a Loan to Value (LTV) of 50% or over then a new valuation will be necessary. In this case a revaluation fee will be charged. Please see our Guide to Standard Mortgage Charges (PDF) for further details. If your LTV according to HPI is less than 50% we can proceed without a revaluation. Please call us on 0845 300 8000* or email us at customer.advantage@boipluk.co.uk to find out more.
What length of time can I borrow the money for?
You can borrow the money for any term from one year right up to normal retirement age. The term of your Further Loan may, if you wish, exceed the term of your main mortgage. Obviously, the quicker you pay it back, the less overall interest you'll pay. On the other hand, the longer you take to pay it back, the lower your monthly repayments will be.
Will I be credit scored when I apply for a further loan?
Yes, when you apply for your further loan, we'll take down information on your family income and outgoings. Based on the information we have, we'll decide whether to give you an Approval in Principle, which will then be subject to credit scoring before you get your formal written offer.
Does the repayment method for my Further Loan have to match my main mortgage?
No, they do not have to be the same. When completing your further loan, you'll need to decide on your payment type. The options are; Repayment where you pay off a proportion of your loan as well as interest each month, Interest only where you simply pay off interest and Part Repayment and Part Interest only where you can vary the proportion of Interest only payments and Repayments.
Please be aware that if you choose to pay on an interest only basis, the capital balance will remain unpaid. It is your responsibility to pay the capital balance by the end of your mortgage term.