Skip to main content
This website is for Mortgage Brokers only, if you're an existing customer click here.
Login
The Co-operative Bank for Intermediaries logo
Register

Further advance

If your clients want to borrow more against their Residential or Buy to Let mortgage, we're here to help you, help them.

How much can be borrowed?

The amount that can be borrowed will depend on the client’s circumstances. We’ll lend up to 85% of the property value, but this could be reduced if part of the mortgage is held on interest-only, or if the applicant owns (or is buying) a second property.

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 6 months shorter than the existing mortgage term.

What rates are available?

If we do agree to any additional borrowing, it won’t be based on the product and interest rates that we offer at new business stage.

Any additional borrowing will be based on our available range of Additional Borrowing Rates. Information on these can be found below.

These interest rates can change over time and may be higher than your client's existing rate on their current residential mortgage, so it’s important that you and your client review our rates prior to submitting an application.

Please be aware that some of our rates may come with a product fee, although we do have a fee-free offering as well.

View Residential Further Advance Interest Rates (PDF)

View Buy to Let Further Advance Interest Rates (PDF)

Green Additional Borrowing options

We offer two Green Additional Borrowing options for existing mortgage customers, which will help your clients carry out any energy saving improvements to their property.

As original ethical bank, this borrowing option offers your client(s) a sustainable borrowing option which allows them to effectively reduce their impact on the planet, save money on their bills in the long-term, as well support them in trying to improve their property’s EPC rating.

As part the eligibility for our Green Additional Borrowing product:

  • Your client must be an existing mortgage customer with us
  • At least 50% of these loans must be spent on energy saving or sustainable property improvements
  • Your client must provide the PDF document of their Energy Saving Home Improvement Plan as part of the application process using our Energy Saving Home Improvement Tool powered by EST (Energy Saving Trust).

Our Energy Saving Improvement Tool

View Green Further Advance Interest Rates (PDF)

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, but we will consider additional borrowing for any other purpose.

Additionally, 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 additional borrowing.

Please advise your client that they can call us on 08000 288 288 (Call charges) to discuss alternative options.

Things for your client to consider when 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, we 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.

Eligibility

Please note, to be considered for an additional borrowing request, your client must:

  • Have held a mortgage with us for at least 6 months
  • Not have been in arrears for the last 6 months
  • Want to borrow £5,000 or more
  • Not wish to consolidate any outstanding debts, such as credit card balances, onto their mortgage.

Will I receive a procuration fee?

Yes, the Bank will pay a procuration fee of 0.3% of the amount of the Further Advance that is approved and lent to your client.

Transitional Arrangement

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 08000 288 288 (Call charges) 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.

How to apply