Also known as a further advance, borrowing an additional amount on your mortgage may be right for you if you are looking to make improvements to your home or fund a special purchase.
A further advance is not like a personal loan – it is secured on your property. You can spread your payment over a longer term and your interest rate should be lower than a personal loan, but if you cannot keep up the additional payments you risk losing your home. You should always check the market to see if you can get a better deal before committing.
As you are not technically remortgaging, remortgage fees are not charged, although you may need to pay for a new valuation to determine the value of your property, plus a further advance fee.
Do I qualify?
Before you apply for a further advance, you should consider the following:
- Minimum loan amount is £5,000
- You must have had your West Brom mortgage for more than three months
- You can borrow up to 90% of the value of your property. If you have an interest-only mortgage, you can only borrow up to 60%
- You must have a good credit record
- The additional monthly payments worked out by the Society are affordable and assessed in line with policy rules
- You are not looking to pay off debts with the additional borrowing