Your questions answered
How much extra money can I borrow?
Standard Residential customers can borrow up to £500,000 extra and Buy to Let customers can borrow up to £300,000 extra, as long as the total borrowing does not exceed the maximum Loan to Value (LTV) for that product and your application meets our underwriting criteria. In addition, for Buy to Let customers 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?
Yes, we do have restrictions on what further lending can be used for, please call us on 0845 300 8000
Will I have to get my property revalued?
Yes a revaluation fee will be charged, please see our Guide to Standard Mortgage Charges (PDF) for further details. You can also call us on 0845 300 8000* to find out more.
What length of time can I borrow the money for?
You can borrow the money for any term between 2 and 35 years (when calculating maximum borrowing we will only include the income of applicants who will be no older than 70 at the end of the mortgage term). Obviously, the quicker you pay it back the less interest you'll pay overall.
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 don’t have to be the same. When you apply for a further loan we’ll ask you what repayment method you want the additional borrowing on.
For residential mortgages we allow a maximum of 75% loan to value on interest only. If you already have 75% of your total borrowing on interest only then your further loan will need to be on a repayment basis.
With interest only mortgages, you must have a suitable repayment plan. We accept interest only applications in conjunction with the following repayment vehicles:
- Endowment policy
- Stocks and Shares ISA
- Pension
- A combination of any of the above repayment methods
We recommend that you consult an Independent Financial Adviser (IFA) to discuss which method is right for you.
You will be required to provide us with documentary evidence from the product provider of your chosen repayment plan (which must have been in place for a minimum of 12 months). It is your responsibility to make sure that the repayment method you choose will enable you to repay the whole of the loan and you must obtain financial advice if you do not know how to do this. We will only check that your policy or plan is in place and we do not guarantee the suitability or performance of any policy or plan that you take out.
You will still have to pay the full amount owed under the mortgage even if the money you receive under the policy or plan is less than the amount owed - if you are unable to do so your home may be repossessed. You should regularly check the performance of your repayment vehicle.