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Additional borrowing can open up a world of different opportunities

A door matt that says home sweet home.

Over the duration of your mortgage your circumstances could change.

This means you may need to borrow additional funds on top of your current mortgage.

There are a number of reasons why you may want to consider additional borrowing. Below, we’ve listed four of the most common motivations many of our members choose to take on a little bit extra:

Build the extension you’ve been waiting for: home improvements are a common reason for borrowing extra money. Whether that is to convert the dead space in your loft or simply to upgrade your kitchen, renovating your home is not only enjoyable, but it may also add a boost to the value of your property when you come to sell.

Raise capital and gift to a loved-one as a deposit: providing the parent or grandparent owns their home, equity can be released from their property by raising a mortgage. By doing so, parents can unlock cash on their property to gift their children or grandchildren a deposit for their own home purchase.

Buy out a joint-borrower and/or partner following a separation (transfer of equity): as your circumstances change you may find that you need to tweak an existing mortgage. Transfer of equity refers to making a change to a mortgage – either adding or removing a person – for a range of reasons such as divorce, separation and bereavement. For example, additional borrowing may help one half of a partnership buy out the other half to change the deeds into one name and continue the monthly repayments.

Purchase further shares of your Shared Ownership property: staircasing is a term given to buy extra shares in a property purchased through the government’s part-rent part-buy Shared Ownership scheme. To be able to do so successfully, your current lender must confirm that they are willing to lend you a further funds to be able to afford an extra slice of the property. The amount you can borrow will ultimately help determine the size of your further share.

If you are considering borrowing additional funds, please contact us and arrange an appointment. We provide a tailored and individual service, and our qualified mortgage advisers are available for Saturday appointments.

YOUR MORTGAGE IS SECURED ON YOUR HOME. THINK CAREFULLY BEFORE SECURING OTHER DEBTS AGAINST YOUR HOME. YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE. 

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