benefits of further advance
Posted on 19th August 2023 at 08:44
What are the benefits of a further advance?
When you tie yourself into a mortgage deal, usually its for 2, 3, 5, 7 or 10 years.
What happens though if you decide you need to borrow a bit more while you are within this fixed period, to build an extension, change the kitchen, get a conservatory, buy a BTL investment property and other things that are a bit pricey to save up for?
You can either remortgage, or arrange a further advance.
If you remortgage, you can raise that extra, however, if you are in a fixed period with the lender, it could cost you a % of your mortgage amount.
To raise £20k, with some lenders you may end up needing to pay £20k in Early Repayment charges if you change lender!
This is where Further Advances come in. You are not looking to change anything with your current lender, just borrow a bit more and because you are not moving away from them, nor changing the deal, you are not asking them to alter their contract with you.
To find out how much you could borrow, we can go through their affordability process with you.
If you are looking at a cost effective way of raising some more money via your home, get in touch
Austyn Johnson CeMAP
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