Additional borrowing

Forestt

I have a nationwide mortgage and understand I can add 10k as additional borrowing due to equity I have.  I am due to remortgage next year and this is not credit scored assuming terms don't change.  Am I in danger of affecting my remortgage next year if I request additional borrowing as would trust I will be credit scored affecting future remortgaging

JonMitchell

Few pointers:

. Have you had any hard searches on your credit report at the moment?
. When are you due for remortgaging next year?

If you have no hard searches atm, then you are fine as long your other credits are tidy and in place.

If you have one or few hard searches already, then best to leave at least 6months before your next application, that requires hard search. But there is no fixed rule of how many hard search do harm to one's credit ability, I once had 4 hard searches with few lenders done on remortgaging on own property + my other rented properties, all went through just fine. Ignore the credit score value on your file as lenders do not see the score numbers of what is on your file.

But saying this, getting an additional borrowing from the same lender that you have been for a long enough may not the need to have a hard search when you apply for capital raising. But it depends on individual lenders, I do know at least another high street lender don't do hard search during additional borrowing.  

amnblog

No, a further advance only affects your new rate with Nationwide next year if it pushes your total borrowing over a loan to value tier. For example if you owe £300,000 on £400,000 value, an extra £10,000 takes your lending from 75% loan to value to 75% + LTV.

If you are remortgaging next year to a new Lender the same loan to value issue applies , plus one element of your borrowing will most likely incur and early redemption penalty with Nationwide.

Forestt

Many thanks my LTV is good so assuming that the market doesn't crash should save money on remortgage.