Requesting a loan against the mortgage

eng1991

We took out a new mortgage back in October 2021. So have made 7 payments. Is it possible to take a loan out with the mortgage provider and they add the loan sum on to the mortgage? For example to do home improvements etc.

Edi81

Who is your lender? 

Do you have the equity in the property? 

eng1991

Nationwide. The value of the property is now approx £200k and £169k left on mortgage. 

K_S

eng1991 said:

Nationwide. The value of the property is now approx £200k and £169k left on mortgage. 

@eng1991 You can apply for additional borrowing / further advance from Nationwide given that it's been 6 months since completion. More details can be seen here, including the reasons that they allow it for and max LTVs

It's max 90% LTV for home improvements, so you could potentially borrow up to 11k, assuming the 200k valuation holds.

https://www.nationwide-intermediary.co.uk/products/additional-borrowing

jimjames

We borrowed an additional 4 times with Nationwide so had 5 mortgages running with them including the further advances. But our LTV was significantly lower so the valuation part wasn't really an issue. They'll still do affordability checks for the borrowing as well as the LTV valuation checks.

eng1991

jimjames said:

We borrowed an additional 4 times with Nationwide so had 5 mortgages running with them including the further advances. But our LTV was significantly lower so the valuation part wasn't really an issue. They'll still do affordability checks for the borrowing as well as the LTV valuation checks.

Thank you for the replies. 

When you say you had 5 mortgages running with them, do they make it so its a seperate payment like a loan? Or do they include it all in the 1 mortgage payment? I.e increase the monthly mortgage payments?

Also would they check payslips and bank statements like when they did prior to offering the mortgage?

Edi81

It would have been one mortgage with five sub accounts. 

Each sub account would have a different rate depending on when it was taken out. 

The monthly payment would have been recalculated. 

Yes, the lender is going to be interested that you have sufficient income to support the additional borrowing. 

K_S

eng1991 said:

jimjames said:

We borrowed an additional 4 times with Nationwide so had 5 mortgages running with them including the further advances. But our LTV was significantly lower so the valuation part wasn't really an issue. They'll still do affordability checks for the borrowing as well as the LTV valuation checks.

Also would they check payslips and bank statements like when they did prior to offering the mortgage?

@eng1991 An application for a further advance/additional borrowing will require a full affordability assessment including income checks, etc.