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Mortgage Glossary Page Masthead Shire Direct - the home of tailor made financial solutions | freephone 08000 282 281

Further Advance loans explained, and how we may be able to help if you are having problems!

A Further Advance is an additional loan made by the existing mortgage lender, and is secured on the homebuyer's property.

Here we explain the Further Advance, their terms and purposes, and potential pitfalls of further advances. We also take a look at possible alternatives and offer help as to how we may be able to assist if you are struggling to get a Further Advance on your mortgage.

What is a Further Advance?

So to recap then, a Further Advance is an additional loan made by the existing mortgage lender, and is secured on the homebuyer's property.

The terms of the further advance will vary from lender to lender, and may well depend upon the

  • purpose of use
  • loan to value on the property
  • track record of the borrower
  • employment status and income

Further advances can be used for a variety of reasons, subject of course to the lender's approval, for example:

Are there any pitfalls to having a Further Advance?

Sometimes, yes! You should probably be aware of the following downsides:

  • You may have to pay for a property valuation to confirm there is sufficient equity in your property.
  • The lenders often charge a fee for arranging further loans.
  • The rate of interest charged is often higher than that of your main mortgage.
  • You may need to undergo a series of references again.
  • If you are considering using the funds for debt consolidation, remember that your unsecured borrowings will become secure, and in the event of default, your property could be repossessed.
  • If you are borrowing over a longer term at a lower rate of interest, you could still ultimately pay more than if you were to borrow at a higher rate over a shorter term!

What are the alternatives to raising funds by a Further Advance?

There are probably several options open to you; the course you take will naturally depend upon your circumstances and requirements.

You could consider any of the following:

Can Shire Direct help me if I can't get a Further Advance?

Well, we'll certainly try!

Firstly, we'll establish and understand your requirements, circumstances and aspirations. Advice and service always come first at Shire Direct. A call to one of our qualified mortgage advisors will get the ball rolling. You'll find our service to be friendly and professional, and certainly not stuffy or judgemental. Please don't hesitate to Contact Us if you think this facility would help you. Our advisors are available up to 10.00pm everyday on Freephone 08000 282 281 (including weekends), and we'll be more than happy to provide you with an in-principle decision - whatever your circumstances! You can also enquire online at anytime.

Hopefully, we've managed to explain Further Advance loans on mortgages for you, and answer any initial questions you may have had. Remember, we're just a free phone call away, and we'd love to hear from you!

Enquire Online now, or call us today 08000 282 281 - our freephone lines are open 8am-10pm everyday! We'd love to hear from you!

Mortgages/Remortgages: The overall cost for comparison is 9.8% APR. The actual rate available will depend upon your circumstances. Ask for a personalised illustration. APR variable and based on a usual case. Most customers are likely to receive a lower rate or the same rate as our overall cost for comparison rate - learn more about APR.

There are no upfront broker fees.
However, a fee may be charged on successful completion. An indication is that on conforming cases (straightforward applications with no or minimal adverse credit) a fee may be charged of up to 1% of the amount advanced, typically £795 and will depend on your circumstances. For non-conforming cases (where case research and processing may be more complex due to adverse credit or unusual circumstances), a fee may be charged of up to 3% of the amount advanced, typically £1,995.

Homeowner Loans: Rates from 8.9% APR variable, but typically 13.9% APR variable. Most customers are likely to receive a lower rate or the same rate as our typical variable rate - learn more about APR. Shire Direct also has a range of non-conforming loan plans with rates up to 19.9% APR. These plans are designed to help those who may have a more difficult credit history, including CCJ's and credit arrears, IVA and bankruptcy problems.
A broker fee of between 0% and 10% of the loan advance may be charged for arranging a secured loan.
All loans subject to status and secured on property.
The actual rate available will depend upon your circumstances. Written quotations on request.

THINK CAREFULLY BEFORE
SECURING OTHER DEBTS AGAINST YOUR HOME.
YOUR HOME MAY BE REPOSSESSED
IF YOU DO NOT KEEP UP REPAYMENTS ON A MORTGAGE OR ANY OTHER DEBT SECURED ON IT.

Adding existing debt to your mortgage will increase the repayment term and overall cost.

Shire Direct and Shire Direct Mortgages are trading styles of Shire Processing Centre Limited which is
Authorised and regulated by the Financial Services Authority in respect of regulated mortgage products and general insurances.
Registered No: 302389. Commercial funding and Secured Loans are not regulated by the FSA.
Licensed Credit Brokers. Consumer Credit Licence Number: 349999.

Shire Processing Centre Limited is registered under the provisions of the Data Protection Act by the Information Commissioners Office: Registration No: Z6795249. Registered in England & Wales. Company number: 2732202. Telephone calls may be recorded for training, monitoring and security purposes. All applicants must be aged 18-years or over.