If your clients want to borrow more against their Residential or Buy to Let mortgage, we're here to help them. You can now apply for a Further Advance on behalf of your client.
How much can be borrowed?
The amount borrowed depends on circumstances. We will lend up to 85% of the property value, but this might be reduced if part of the mortgage is held on Interest Only, or if the applicant owns (or are buying) a second property.
What rates are available?
If we agree any additional borrowing, it will not be based on the product and interest rates offered for new business. The additional borrowing will be based on our range of Platform Additional Borrowing Rates, which can be found in the link below. These interest rates change over time and they may be higher than your client's existing rate on their main mortgage. Therefore it is important that you and your client review our rates prior to submission of an application to check that the required product is still available. Some of our rates have a product fee, but we also offer the option of fee free products.
What can the additional borrowing be used for?
We won’t offer additional borrowing for debt consolidation, business purposes, or for investment or speculative purposes. We will consider any other purpose.
If a mortgage is held on a shared ownership or shared equity scheme, or if the mortgage has a guarantor, then we are not able to offer further borrowing - your client can call us 01752 236550 to discuss their alternative options.
Considerations for borrowing more
There are a few things for your client to consider before borrowing more:
- Quotations will be required if the money is being used for home improvements. These need to be obtained in advance
- We’ll check the property value. If this has changed, we might ask the client to pay for it to be revalued
- We might ask your client for up to date proof of income
- If the existing loan is interest only, we’ll ask about plans to repay the loan
- Your client may be transferred to a more recent version of the mortgage terms and conditions
- We will send a mortgage illustration and an offer that will need to be read and, in the case of the latter, signed by your client
- A solicitor might be needed. Sometimes Platform will cover solicitor costs
- Once we’ve checked all the details, we’ll agree to send the funds either to your client or their solicitor.
Please note that to be considered for an additional borrowing request, your client must:
- Have had a Platform mortgage for at least 6 months
- Not have had any arrears for the last 6 months
- Want to borrow £5,000 or more
- Not want to consolidate any outstanding debts, such as credit card balances, onto their mortgage.
Does new borrowing have to be on the same term as the existing mortgage?
No, new borrowing can be over a shorter term, and it must be at least 4 months shorter than the existing mortgage term.
Will I receive a procuration fee?
Yes, Platform will pay a procuration fee of 0.3% of the amount of the Further Advance that is approved and lent to your client.
There are borrowers who are currently maintaining monthly payments which demonstrates that their mortgage is affordable, but on assessment would fail the standard affordability assessment. To ensure the continued fair treatment of customers, the Bank applies transitional arrangements provisions under MCOB 11.7, If you feel your client would benefit from a Transitional Arrangement, they will need to contact us directly on 01752 236 550 so that we can understand your client’s current position and circumstances, before agreeing the best way in which to support your client.
What if my client is approaching maturity and would also like to do a Product Transfer?
You will only be able to request Product Transfer and Additional Loan variations separately. So once affordability for an additional Loan has been established, you will need to consider in which order to progress the variations to provide the best outcome for the customer. If it will be in the customer's best interest to complete a Product Transfer and Additional Loan simultaneously, the customer must be referred to Bank directly to progress a combined Product Transfer and Further Advance.
You will only be able to request Product Transfer, Port and ToE variations separately. You will need to consider in which order to progress the variations to provide the best outcome for the customer.
How do I apply?
Please click on the link below to see how you can apply for a Further Advance on behalf of your client.