Further Advance

What is a Further Advance?

A Further Advance is the term used when a lender agrees to grant additional credit on top of an existing mortgage. Often they are used for home renovations or to help buy a second property.

You should be able to apply for a further advance provided you have a good credit history and your home is in Equity, as such you may not be able to apply if the mortgage is relatively young (circumstances depending).


Q: What are the risks?

A: Adding an extra loan to your property means that there could be a higher risk of your property being repossessed if you fail to keep up with the additional repayments.

Q: What are the advantages?

A: The interest rate of a further advance is in-line with that of a mortgage, which means often they are considerably lower than they would be on a personal loan, meaning the amount to repay is lower overall.

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