To be eligible for a further advance, your client must:
- Be a Buy to Let customer
- Have owned and let the security property for at least six months
- Have been making full monthly payments on their mortgage for at least six months
- Not have been in arrears during the last 12 months, and no more than two months in arrears
- Intend to borrow at least £2,500
We won’t accept further advance applications in the following circumstances:
- If your client has a product switch application in progress (further advance applications will be reviewed after the switch is completed)
- Capital raising for business purposes (if you're unsure, please contact Broker Chat to discuss prior to submission)
- Applications with more than two clients
- Where a further advance and change of borrower (also known as a transfer of equity) have been requested at the same time, either transaction must have completed before applying for the other. Please note that both a change of borrower (transfer of equity) request and further advance application will be assessed based on the relevant criteria at the time of submission.
- Regulated Buy to Let applications
- Where the requested further advance term exceeds the longest term on any existing mortgage accounts linked to the property. If the term exceeds this, we’ll reduce it to the closest whole year to the main loan.
- If the existing mortgage term has less than 5 years remaining. The existing term will need to be extended to 5 years or more prior to submission of the further advance application.
Affordability assessment
To ensure your client can cover the additional monthly mortgage interest payment, we’ll stress the existing loan based on the term and the overall LTV.
For more information on our rental checks click here.