Additional borrowing

Further advances

Your client will need to have held their lifetime mortgage with us for at least 6 months (from the date of completion) before they can apply for a further advance.

A further advance is not guaranteed and will depend on:

  • the further advance facility being available at the time the application is made for additional funds
  • whether your client meets our lending criteria at the time

If you know that your client will need more borrowing than they are planning to use initially, you should consider whether this product is suitable.

The initial advance must have been completed for a minimum of six months and be registered at the land registry. (Not applicable to all Scottish properties)

The minimum advance is £4,000.

The early repayment charge (ERC) period for the further advance will commence on completion of the additional borrowing.

In the case of the Interest Roll-up with Voluntary Payment option product, annual ERC-free payments of up to 10% of the initial further advance will also be allowed on any further borrowing.

The original LTV of the product will apply. Your client would not be allowed to switch to a higher LTV product to secure additional borrowing.

If your client has one of our Interest Payment Lifetime Mortgage, then they can elect to make further interest payments on the additional borrowing.

The further advance will be treated as a separate advance and in the case of our Interest Payment product your client can decide how much interest they would like to pay independent of the arrangements applying to the main advance.

A fee may be charged for processing the further advance – this will be advised to you at the time of application – more information can be found in our Tariff of Charges.

A re-valuation of the property may be required and, in this instance, a re-valuation fee would be payable.

Application process

Your client must obtain independent financial advice.

You will then email OneFamily underwriters providing the following information:

  • The required further advance amount (a specific amount, or the maximum amount available)
  • In the case of the Interest Payment product you will have to confirm the monthly amount your client wishes to pay and for how long (for example, the full interest)
  • If you would like a new property valuation to be carried out (a valuation fee will be payable). Please note that we may ask for a new valuation to be carried out
  • If you are charging an advice fee, and if so, the amount.

The underwriters will approve the case and provide you with a KFI.

You will then complete the application form with your client and forward it together with any fees to our underwriters for processing.