Applying for a further advance mortgage with Natwest – what factors do they consider?

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I'm very much a noob in this area, but I would be very grateful for any advice in regards to taking out a further advance loan on an existing mortgage.

I'm considering adding to my existing mortgage borrowing.  At present, my outstanding Natwest mortgage is at 39.5% of the value of the property.  The property is in an area near Cambridge where property values would be expected to increase over time.

My circumstances are that I am full-time employed in a very stable and secure job.  My income is so so but not great.  My debts are an overdraft and 2 credit cards amounting to about 7K in total.

The minimum that Natwest allows to borrow on a mortgage is £10K which is the amount I was considering, and I have a few questions about what happens when adding borrowing to your existing mortgage:

For what purposes can you add borrowing to your mortgage?  My reason for doing this is home improvement which should be acceptable I think, although I would like to also pay off or reduce my overdraft as well.  Not sure how they would view using any of it to pay off an overdraft though?

When Natwest decides on a further advance mortgage application, what kind of factors would be considered?

Property equity?

Reason for taking out loan?

My income/outgoings?

So that I can get my head around all this, what other kind of considerations are looked at when being considered for a further advance mortgage? 

Many thanks!

 

[Deleted User]

Affordability, credit and payment history, debt, purpose of loan, ER, financial associates, employment, income, economy, etc.

It's not a great time to be seeking further borrowing, especially if you're in your OD and carrying credit card debt.

[Deleted User]

Equity, Income, existing debt (they won't take into account that you would pay off your o/d as you might not) and lastly credit history (not score no one has one) so any missed or late payment history?

The_Real_Cheddar_Bob

look at the date you are due to remortgage. If it is a while ahead, then you can apply and see what they say. I assume this is for debt consolidation. 
Take this from experience, and i mean this politely, when you consolidate, unless you remove access to your credit cards, loans etc you will have an urge constantly to borrow more. You in effect will end up in square 1. 

Good luck whatever you choose to do

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Many thanks everyone for your replies - it's invaluable to have a better understanding of this.
ZX81 - sorry when you say 'ER' what does that mean?

To summarise then - the key areas being looked at (in no particular order) are:

• Property equity 
• The purpose for the loan
• Affordability (income-outgoings)
  
• Credit and payment history
• Existing debt
  

Thanks again

[Deleted User]

ER is Electoral Roll.

[Deleted User]

Remember too that lenders have to consider that you will take the 10k and chuck it on some nag at the races, rather than pay off your debts, so affordability will always be done based on extra debt + existing debt, not existing debt - the loan