Borrowing more on your mortgage

Before you look at borrowing elsewhere, you may want to talk to us to see if we can help. We’ll look at your current situation to see if borrowing from us is right for you.

You’ll need details about your income and how much you pay towards childcare, loans, credit cards, or any other credit commitments you have.

To apply for an additional loan, you must:

• Borrow at least £5,000
• Repay the money over at least two years. The extra borrowing doesn’t have to end at the same time as your main mortgage.

Borrowing more from us can be a convenient way to get extra money, but you should think about how this will affect your finances:

• Your mortgage will be split into separate parts. Your current mortgage will remain the same, and the extra amount will be on a different interest rate
• The amount you owe will go up
• Your monthly payment will increase.

Other options might suit you better, so check before you decide.

Our mortgage advisers can help you understand your options if you’re a homeowner with us. We don’t give advice on Buy to Let mortgages.

Got an amount in mind?

Use our calculator to see how much your monthly payment could be.

If I borrow more, what can I use the money for?

There are several reasons you can borrow more, such as:

• Making your property more energy efficient
• Buying a rental property
• A new kitchen or bathroom
• University fees.

Get in touch to find out more and talk to us about your options.

Got an idea of the amount you want to borrow? Use our calculator to see how much your monthly payment could be.

What do I need to know?

It’s important that any Buy to Let loan is affordable for you. Before borrowing more, think about whether this could put you under any financial pressure. For example, could you still pay the mortgage if:

• Your tenant doesn’t pay their rent?
• You have no tenant?
• The property needs repairs?

How do you work out how much I can afford?

We’ll check the rent you’re paid covers your current mortgage and the extra amount you want to borrow. We may reduce the amount you can borrow if the rent isn’t enough. However, sometimes we can take your personal income into account if you meet certain criteria.

What can I use the money for?

You can borrow more on your Buy to Let mortgage for several reasons, such as:

• Improving your property’s Energy Performance Certificate (EPC) rating. For example, adding insulation, upgrading windows, or installing a more efficient heating system
• Other renovations or repairs to your property
• Buying another rental property.

What happens if the rental or financial markets change?

You must still pay your full mortgage payment and any costs from letting your property if:

• The rent you charge falls below your monthly mortgage payment
• You have no tenants living in your property.

• Will I need to have my property revalued?

  You’ll have to pay for a new property valuation if:

  • We last valued your property more than 10 years ago
  • You want to borrow £20,000 or more
  • You want to borrow more than 75% of your home’s value
  • You think your property is worth more than the value we have on record.

   
  We’ll use a House Price Index (HPI) to work out your property’s value. This free service uses recent property sales where you live to calculate how much your property is worth.

  Have a look at our Tariff of mortgage charges to see how much you’ll have to pay for a revaluation.
  

• Will I be credit scored when I apply to borrow more?
  Yes, we’ll check the credit score of everyone named on the mortgage. This will show on your credit record.
  
• Is there anything I can’t use the money for?

  There are some rules.

  You can’t borrow extra for:

  • Business reasons or speculative purposes, such as buying stocks and shares
  • Paying tax
  • Gambling debts
  • A timeshare

   
  You can borrow up to 75% of your property’s value if you have a Buy to Let mortgage.

  You can borrow up to 90% of your property’s value if the mortgage is on your main home. This is reduced to 75% if you want to pay off personal debt, such as credit cards or loans.
  

• Can I borrow more to pay off personal debts?

  Yes, but it’s important to understand:

  • Adding the value of your debts to your mortgage means you’ll pay more interest overall. This is because your mortgage loan will be higher, and you may be paying it off over a longer period of time
  • Your monthly payments will rise. If you miss payments, your property could be at risk
  • Before adding more debt against your property, speak to your existing lenders. They may offer repayment plans that don’t affect your mortgage. Ask if these changes could impact your credit score, as this could make future borrowing harder.

   
  If you’re considering this option, we can help you review whether adding your debts to your mortgage is the right move for you.