What is a further advance?

A further advance is usually borrowing more money from your existing mortgage lender, charged at a different rate to your existing mortgage.





This can make sense in some circumstances as you can spread the repayment amount over a long term and rates are typically better than a personal loan

The main reasons for a further advance are:

  • Funding home improvements
  • Raising a deposit on a subsequent property purchase
  • Debt consolidation

They may also be advisable if the advance offered is competitive and you don't want to (or are unable to) switch lenders.

Increasing your mortgage for home improvements might add value to your property but using a further advance to pay off debts will require much more thought, always look to consider the alternatives first.

The additional loan would be linked to your property, which you could lose if you weren't able to keep up your extra loan payments.

Even though interest rates on mortgages are normally lower than rates on personal loans – and much lower than credit cards – you could end up paying far more in the longer term.

You are not technically remortgaging, although you may need to pay for a new valuation to determine the value of your property, plus a further advance product fee. This can vary depending on the lender.


Think carefully about securing other debts against your home. Your home or property may be repossessed if you do not keep up repayments on your mortgage or any other debts secured on it