Getting a Further Advance on Your Mortgage: Accessing Funds for Home Improvements & More

So, you’ve been in your home for a while, made friends with the neighbours, maximised your loyalty points at the local Costa - but you need a bit more space, or a new boiler, or you find yourself facing one of life's unexpected twist and turns.

Welcome to the world of the further advance — a fancy term that basically means topping up your existing mortgage to borrow additional funds from your current lender.

Maybe you want to build that dream kitchen, finally tackle the loft conversion, or just consolidate some debts at a better rate. Whatever the reason, let’s walk through what it all means, what lenders look for, and the pros and cons...

💰 What Is a Further Advance, Really?

In simple terms, a further advance is when you ask your current mortgage lender for more money on top of your existing mortgage balance. It’s not a remortgage (where you switch to a new lender) — it’s more like saying to your bank, “Hey, we’ve been together a while. Things are going well. Mind if I borrow a bit more?”

They’ll review your finances again, just like they did the first time, and decide if they’re happy to lend you extra.

🕵️‍♀️ 5 Things Lenders Look For in a Further Advance Application

Before they hand over the extra cash, lenders will check a few key things — because, as charming as you are, they still need to be sure you can pay it back.

1. 🏦 Affordability Can you comfortably manage the higher monthly payments after the advance? Expect a fresh look at your income, outgoings, and any debts.

2. 💳 Credit History Your credit score still matters. If you’ve kept up with payments and avoided buying five sofas on finance, you’re in good shape.

3. 🏠 Property Value The lender will likely revalue your home to see how much equity you have. More equity = less risk for them = better chance for you.

4. 🔢 Loan-to-Value (LTV) Ratio This is the percentage of your property’s value you’re borrowing against. Lenders usually like to keep this below 85%, though it can vary.

5. 🎯 Purpose of the Loan They’ll ask what you plan to do with the funds — home improvements? Fine. Debt consolidation? Possibly fine. A Disney cruise? Even this might be fine.

⚖️ The Pros of a Further Advance

• Lower Interest Rates: Often cheaper than personal loans or credit cards.

• Convenient: You stay with your current lender — less paperwork, fewer passwords to remember.

• Home Improvements Can Add Value: That new kitchen could pay you back later.

• Flexible Repayment Terms: You can often align the term with your existing mortgage or choose a new one.

😬 The Cons (Because There’s Always a Catch)

• New Loan, New Costs: You may need a valuation or admin fee, and the advance could be on a different interest rate.

• Your Mortgage Term Might Extend: Meaning you’ll be paying interest for longer.

• More Debt, Bigger Risk: It’s still secured against your home — miss payments, and things can get serious.

• Possible Early Repayment Charges: If your current deal has penalties, check before making changes.

🧠 Should You Get a Further Advance?

If you’ve got a solid repayment history, some nice equity in your home, and a clear reason for borrowing, it can be a smart move — especially for home improvements that boost your property’s value.

But if you’re already stretched or thinking of using it to cover everyday expenses, time to rethink.

☕ Final Thoughts

A further advance isn’t just “free money” from your lender — it’s a tool that can work really well when used wisely. Think of it like adding an extension to your mortgage relationship: exciting, useful, but worth planning carefully.

So before you grab the sledgehammer and start knocking down walls, make sure the numbers add up — and your lender agrees!