If you already have a mortgage, additional borrowing is an option worth exploring if you want to access extra funds. Rather than taking out a completely new mortgage, you may be able to borrow more from your existing lender.
Here, we explain how additional borrowing on a mortgage works, who can apply, how lenders assess applications, how it compares to remortgaging, and where to find the most suitable options for your needs.
What is additional borrowing on a mortgage?
Additional borrowing on a mortgage (sometimes called a further advance) allows you to borrow extra money from your current lender, secured against your property.
This means increasing your overall mortgage balance, usually either by:
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Adding a new sub-account to sit alongside your existing mortgage
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Increasing your current loan amount
How the process works
When you apply for additional borrowing, your lender will carry out affordability checks similar to a standard mortgage application.
If approved, the extra funds are usually released as a separate loan linked to your existing mortgage, and may come with:
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A different interest rate from your existing mortgage
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A separate repayment term
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Its own product features (such as early repayment charges)
Your monthly payments will increase to reflect the higher borrowing amount, and you’ll need to repay both the original mortgage and the additional borrowing over time.
Can all mortgage holders do it?
No, not all mortgage holders will be eligible for additional borrowing.
Lenders will reassess your financial situation, including your income, outgoings, credit profile, and the current value of your property, before approving any extra borrowing.
They’ll also consider your total loan-to-value (LTV) after the additional borrowing is added. If your LTV is too high, your options for additional borrowing may be limited.
Do you need to carry out a full remortgage?
Not necessarily. Additional borrowing allows you to access extra funds without switching lenders or replacing your existing mortgage deal. This can be useful if:
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You’re tied into a fixed-rate deal with early repayment charges (ERCs)
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You want to avoid carrying out a full remortgage
However, in some cases, remortgaging to a new lender may offer better rates or more flexibility, especially if your current lender’s additional borrowing rates aren’t competitive.
Eligibility criteria for further advances
Each lender has its own criteria for additional borrowing on a mortgage, but common requirements include:
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Affordability: You’ll need to demonstrate that you can afford the higher monthly repayments based on your income and current financial commitments.
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Loan-to-value (LTV): The total borrowing (including the additional amount) must fall within the lender’s maximum LTV limits (which vary by lender).
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Borrowing amount and term: Most lenders have a minimum additional borrowing amount, often around £5,000 (some may be higher or lower). Lenders may also only have specific term lengths available.
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Credit profile: Lenders will assess your recent credit history to ensure you meet their specific criteria. If you have bad credit, you may need to consider switching to a specialised bad credit lender.
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Purpose of borrowing: Some lenders may restrict how the additional funds can be used. For example, some lenders allow additional borrowing for consolidating debt, while others do not.
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Existing mortgage: Your current mortgage account should have a strong repayment history, with no issues such as missed or late payments. For most lenders, you must have also held your mortgage for at least 3 to 6 months.
How to borrow additional money
Getting additional borrowing on your mortgage usually follows a similar process to a standard mortgage application. However, there are some key differences:
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Speak with a broker: Because lender criteria, rates, and policies on additional borrowing can vary significantly, the best approach is to speak with an experienced mortgage broker. They can assess whether a further advance with your current lender or a full remortgage is more suitable and cost-effective.
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Compare your options: Your broker will review your income, outstanding mortgage balance, property value, and credit profile to work out how much you may be able to borrow. They’ll then compare your current lender’s additional borrowing rates against deals across the wider market.
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Apply for additional borrowing: Once the most suitable lending option has been identified, the application process typically involves affordability checks, a credit assessment, and sometimes a property valuation before a formal offer for the additional borrowing is issued.
If you’d like to explore additional borrowing or compare it against remortgage deals across the market, you can get started here.
Secure your further advance
Additional mortgage borrowing calculator
If you’re considering borrowing more on your mortgage, it’s useful to understand how this could affect your monthly payments and overall borrowing. Using a remortgage calculator for additional borrowing is a useful way to get initial figures.
To get an idea about what your monthly repayments would look like, you can use our free additional borrowing mortgage calculator below. Simply enter your property’s value, the remaining balance on your mortgage, the amount of additional money you want to borrow, followed by the term length and interest rate:
Mortgage lenders’ policy towards additional borrowing
Lender policies can vary significantly, but to give you an idea of what to expect, here’s a range of popular UK mortgage providers and their current approach to additional borrowing:
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Lender |
Additional borrowing approach |
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Now part of Santander; additional borrowing handled under Santander criteria and affordability rules. |
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Alliance & Leicester |
Also part of Santander, further advances follow Santander’s current lending policy. |
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Offers additional borrowing from at least £5,000, and you must choose a term greater than 2 years. |
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You can borrow over £5,000, and there’s no arrangement fee, but you must have had a mortgage for at least 6 months. |
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Borrow up to 85% of your home’s value (or 80% if the purpose is debt consolidation). |
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A buy-to-let (BTL) mortgage lender offering further advances, typically subject to rental income stress testing, LTV limits, and minimum loan thresholds. |
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Now part of The Co-operative Bank, additional borrowing follows Co-op criteria, including affordability checks and internal underwriting. |
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Part of Lloyds Banking Group; further advances are handled under Lloyds criteria and lending rules. |
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Now part of Nationwide, Clydesdale offers additional borrowing with funds released in 6 to 8 weeks. |
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Borrow more with a further advance if you’ve had your mortgage for at least 6 months and your total borrowing is less than 95% LTV on a repayment mortgage, 50% on interest-only, or 75% for BTL. |
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Minimum additional borrowing amount is £5,000, and the term can range from 2 to 40 years. First Direct permits extra borrowing of up to 90% of your home’s value. |
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Halifax allows additional borrowing of up to 85% of your home’s value (75% for interest-only). You must borrow at least £5,000 and have had a mortgage for over 6 months. |
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The minimum additional borrowing amount with HSBC is £10,000 with a term of at least 5 years. |
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Specialist lender offering further advances for existing customers, often focused on more complex credit profiles and subject to manual underwriting. |
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Allows additional borrowing for a wide range of purposes (including purchasing additional shares in a shared ownership property, debt consolidation, purchasing land or property, and others). |
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Borrow up to 85% of your home’s value as long as your monthly payments are up to date, you need at least £5,000, and you’ve had your mortgage for at least 6 months. |
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Borrow extra money on top of your NatWest mortgage (up to 90% of your property’s value) with a term of 3 to 40 years (35 years if it’s interest-only or BTL). |
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Nationwide allows additional borrowing of up to 90% of your home’s value and also offers a “green additional borrowing mortgage” with a 0% initial interest rate if you’re making energy-efficient home improvements. |
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Open to additional borrowing as a second charge loan, but is more of a specialist lender, typically for borrowers with adverse credit or a complex case. |
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Additional borrowing on a mortgage with Principality can be applied for if you’ve had your mortgage for at least 3 months, and a range of reasons for borrowing is supported (including home repairs or improvements, consolidating debts, or a life event). |
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Borrow more with an RBS mortgage up to 90% of the value of your property for a term of between 3 and 40 years (35 for interest-only or BTL). |
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Santander allows additional borrowing of up to 90% of your home’s value as long as it’s at least £5,000 with a term of over 5 years. Santander won’t accept applicants who’ve declared bankruptcy or are subject to an IVA. |
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Skipton allows further advances for a range of reasons and also offers green additional borrowing products, where at least 50% of the amount you borrow must be spent on energy-efficient home improvements. |
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No longer offers new mortgages, so additional borrowing is generally limited to existing customers under legacy terms. |
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Borrow up to an 85% LTV with Co-op, unless the reason is for purchasing an additional legal interest (such as buying someone else out), in which case there’s a 90% LTV limit. |
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To borrow more with the Mortgage Works, you must be a BTL customer with a mortgage for at least 6 months and looking to borrow at least £2,500. Your property must also have an EPC rating between A-C for an LTV between 75% and 80%. |
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Borrow additional funds from TSB if the amount is over £10,000, you’ve had your mortgage for at least 6 months, and the total is less than 85% of your home’s value (75% if you have an interest-only mortgage). |
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Virgin allows additional borrowing for amounts between £3,000 and £2 million (as long as the total is less than 85% LTV). For BTLs, there’s a £1 million cap and 80% LTV limit. The term length must be between 5 and 40 years. |
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Woolwich |
Now fully part of Barclays, additional borrowing follows Barclays’ current further advance criteria and processes. |
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Borrow anything over £3,000 up to 85% of the value of your home with YBS for terms between 5 and 40 years. They allow loans for a range of reasons apart from debt consolidation or business purposes. |
Why choose Money Helpdesk for your mortgage needs?
Arranging additional borrowing on a mortgage can be more complex than it first appears, particularly when comparing it against remortgaging or other borrowing options.
Here’s why homeowners across the UK use Money Helpdesk when exploring an additional borrowing mortgage:
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Access to independent, experienced mortgage advisors
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Whole-of-market comparisons across lenders
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Guidance on structuring additional borrowing in the best way
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Free initial chat with no obligation to proceed further
If you’d like to explore additional borrowing or compare options for raising funds based on your circumstances, you can get started here.
FAQs
You can speak directly with your existing lender, but this will limit you to their products.
For a more comprehensive view, we can introduce you to an experienced mortgage broker who can compare additional borrowing options across the wider market and help determine the best approach.