Further advances

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Further advances

Your clients can borrow more money against the value of their home. The further advance is secured against their existing Halifax mortgage.


Criteria

Please check the application will meet our criteria before applying:

  • Minimum further advance amount is £10,000.
  • Further advance not permitted within 6 months of completion of original mortgage.
  • No arrears - where the existing mortgage is in arrears a further advance application cannot be accepted. The customer should be advised to bring their account up to date.
  • Acceptable reasons for a further advance – see Criteria section for a list of acceptable reasons. Where for debt consolidation consider if there are any second charges on the property e.g. shared ownership schemes. Further advances are not accepted on shared equity schemes.
  • Maximum 85% Loan to Value - existing loan plus further advance amount must not exceed 85% LTV; where above 80% LTV (based on current indexed valuation) a revaluation will be required and a revaluation fee will be due.
  • Repayment plans – where current mortgage has an Interest Only amount acceptable repayment plan(s) must be held or no further advance will be available.

Benefits: why offer further advances?

  • Combined further advance and product transfer – borrow additional money and switch to a new rate on existing borrowing in a single application.
  • Review opportunity - review your clients' finances including their general insurance.
  • Case tracking - access to regular email updates from our team on the progress of your case.
  • Earn a procuration fee.

Risks

Any additional borrowing is secured against your clients' home.


Use the Affordability Calculator as a guide to how much your clients could borrow.

Our tracker rate mortgages are linked to Bank of England bank rate (also known as Bank of England repo rate). Details of this rate can be found on the Bank of England website at www.bankofengland.co.uk.

For independent information on mortgages, visit the website 'Money Advice Service'.

If you do not have professional experience, you should not rely on the information contained in this communication. If you are a professional and you reproduce any part of the information contained in this communication, to be used with or to advise retail clients, you must ensure it conforms to the Financial Conduct Authority's advising and selling rules. This site is intended for UK residents unless otherwise stated.

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