Could you release more money with your lifetime mortgage?
If the value of your home has increased enough since you took out your lifetime mortgage, you may be eligible for a Further Advance. The simplest way to check is by completing our online enquiry form.
A Further Advance is additional borrowing and a long term financial commitment. If you are eligible for a Further Advance you can only apply through a Financial Adviser. They will outline the benefits, risks and the costs involved, and make the application for you.
Any additional borrowing will be secured against your home and will be based on the terms available from us at the time you apply.
For more information on taking a Further Advance select one of the options below.
- Things to consider
- What information do I need?
- How do I check if I am eligible for a Further Advance?
- How do I apply for a Further Advance?
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- You must have had your lifetime mortgage for 12 months and taken all the money in your Drawdown Facility if you had one.
- There must be enough equity in your home to release the amount you want. The amount you can take will be based on an independent surveyor’s valuation of your home. This is not the same as an estate agent valuation and may be lower. It's based on value and suitability for a mortgage rather than for marketing the property.
- If you have Inheritance Protection you can reduce or remove this when you take a Further Advance to increase the amount available to you. You should consider discussing this with your family or beneficiaries before making a decision.
- The minimum amount you may be able to take is £5000. The interest rate may differ from your initial loan as it depends on the rate available at the time you apply for a Further Advance.
- There are costs to consider when applying for a Further Advance. These are in your Tariff of Charges.
- Your Further Advance will be paid in a single lump sum with no drawdown facility.
- When deciding on how much to take, you and your adviser should consider your current and future financial needs. You may be able to take more Further Advance’s but you’ll have to follow the same advice and application process.
- If you want to apply for a Further Advance this can only be done through your Financial Adviser and will usually take 3-4 weeks to complete. In most circumstances you won’t need a solicitor.
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To check if you are eligible for a Further Advance please have the following information ready
- Account number - to identify your account we need your account number. This is on your Offer of Loan document or your annual statement.
- Email address - we need your email address to reply to your enquiry. If this is a joint account you only need to give us one email address.
- Details of your initial loan or most recent drawdown – this is to check that you're the person who took out the loan or have authority to act on their behalf. The information is on your annual statement.
- Authority to act on the customer’s behalf – we need to be sure that we're dealing with you, or someone who has the authority to act on your behalf. If you're not the account holder and we have your authority details, you can complete the online request form. If we don’t have your authority details, please call our customer service team on 03330 048 444. Monday to Friday, 8.30am to 5.30pm. We may record and monitor calls.
- Estimate of your home’s value – this is to check that it has increased enough to take a Further Advance.
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The simplest way to check if you're eligible for a Further Advance is by completing our online form. You can apply in four simple steps:
- Step 1: Complete the online enquiry form which will take about 5 minutes.
- Step 2: When you've submitted your enquiry we'll email you with the maximum amount you may be eligible for. If we need further details we’ll call you back to discuss your enquiry.
- Step 3: Once you’ve received our response, if you are eligible and wish to apply you will need a Financial Adviser. You can use the Financial Adviser you had when you first took out your lifetime mortgage. Or, you can find a Financial Adviser on the Equity Release Council website.
- Step 4: The application process will usually take 3-4 weeks to complete.
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How do I apply for a Further Advance
When you apply for a Further Advance, these are the steps you follow.
Step 1: Speak to your adviser
You must speak to an adviser to consider your options and decide if a Further Advance is right for you.
Your adviser will help you find the best option to meet your needs.
Step 2: Understand the facts
Your adviser will check if you are eligible and provide us with the information we need. We'll send them a Key Facts Illustration. This gives full details of the amount you can borrow, the costs and implications and next steps. They will share this with you and discuss if it is the right choice for you.
Step 3: Application and valuation
If there is anything you do not understand, ask your adviser to explain before you decide to apply. Your adviser will then complete and send us your Further Advance application form. We’ll contact you to make a payment for the cost of a new valuation. The payment can be by debit or credit card. Our independent surveyors will arrange to visit your home to carry out the valuation.
Step 4: Further Advance offer
We will process your application based on the valuation. If this is acceptable we'll post or email you a Further Advance Offer of Loan. When you receive the Offer of Loan, please check all the details, sign the acceptance form and return to us. If you have any questions, you should discuss them with your adviser. We will send copies to your adviser to keep them informed. If this is a joint account you’ll both need to sign. You'll have the option to sign online via a secure platform. Additional guidance and support for this is on How do I sign a DocuSign.
Step 5: Completion
On receipt of your signed acceptance form we’ll send you a confirmation letter and pay the Further Advance into your bank account. We will send copies to your adviser for information.
