Key features – Residential Further Loans
‘So, what do I really need to know about further loans? Tell me straight, in plain English.’
You should find all the key features to further lending below. However if anything is still unclear, do not hesitate to give us a call on 08706 072 072*
Repayment Term – This can be the same as your mortgage term or a shorter one if you want to pay the loan off sooner. The minimum term is 5 years, however you are free to pay your loan off at any time with no early repayment charges.
Eligibility – We will need to assess your application on an individual basis, however you will need a B&B Mortgage that has been running for at least 6 months and have some equity built up in your home.
Secured – A Further Loan is secured on your property – like an extension of your mortgage and it’s a great way to take advantage of the equity in your home without moving house. If you are looking to borrow without having the loan secured on your home you may want to consider a personal loan instead.
Loan amount available – This depends on the amount of equity in your home, your current borrowing with us and your other commitments.
Purpose – You can use a Further Loan for just about anything, it doesn’t have to be for home improvements.
Costs – All Further Loans carry a Further Loan arrangement fee of £199 that can be paid up front, or added to your loan amount. Unlike your main mortgage you shouldn’t need to pay any separate valuation or legal fees.
Repayments – Further Loans can be taken out on either a repayment basis or interest only basis. If you choose an interest only loan you should have a suitable repayment vehicle in place to repay the capital at the end of the mortgage term.
Valuations – Whether you need a valuation will depend on how much equity in your home you are looking to use and how long it’s been since your home was last valued. If we do require a valuation you won’t be charged anything extra.
Insurance – If you increase your borrowing you may want to review your existing protection needs. Just ask to speak to an adviser when you apply for your loan or click here for more information.
