Further Advance | more2life

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What is a Further advance?

A Further advance on a Lifetime Mortgage is additional borrowing from your existing lender, taken after your original Lifetime Mortgage has already been set up. It is secured against your home in the same way as your initial loan and the interest rate is set at the prevailing rate at the time the Further advance is taken which could be higher or lower than the rate on your initial borrowing.

You may be eligible for a Further advance if:

You didn’t take the maximum amount available to you initially.
You did take the maximum amount available, but your property value has increased since then.

Things to consider

We want you to know the key things to think about before you decide to take additional funds from your property via a Further advance.

Equity release will reduce the value of your estate and may affect your entitlement to means tested benefits.
A Lifetime Mortgage is a loan secured against your home. It is subject to compound interest, meaning the amount you owe can grow quickly.
With a Lifetime Mortgage there are typically no monthly repayments to make as the loan, plus roll up interest, is typically repaid through the sale of the property when the last remaining applicant passes away or moves into long term-care.
Equity release may leave you with limited or no equity in your property. This will reduce your financial options in the future.
To take a Further advance, you ﬁrst need to receive advice from a qualiﬁed equity release adviser who'll look at all your later life lending options and help you make an informed decision.

What you need to do

Before you apply, you'll need regulated advice from an equity release adviser. They'll review your circumstances and if a Further advance is suitable for you, they’ll send the request to us on your behalf.

How to find an equity release adviser

If you’re yet to ﬁnd an equity release adviser, we recommend searching the Equity Release Council's database of registered equity release adviser members. All Equity Release Council members have agreed to abide by the Equity Release Council rules, guidance and standards, and have signed up to the Council's Statement of Principles.

Find an adviser

Your adviser will also explain:

Any application costs.
How the interest rate may be higher or lower than than the interest rate on your initial release amount.
The impact on your total cost of borrowing.

What to expect

1. Adviser request - If suitable, your adviser submits a request for a Further advance.
2. Eligibility check - We’ll assess your eligibility, including minimum release amounts.
3. Application submission - If eligible, your adviser completes and submits the application on your behalf.
4. Processing - Our team begins processing your request.

Keep in mind:

If your initial advance completed less than 6 months ago, we can still use the original valuation. If it has been more than 6 months since your initial advance, you’ll need a new full valuation. The valuation fee will depend on the current value of your property.

Step-by-step guide

Your journey from application to completion

We’ve made the process of getting your Further advance as smooth and stress-free as possible. Here’s what you can expect once your adviser submits your application. Usually, it takes about 4 to 6 weeks from application to completion, however it could be longer or shorter depending on personal circumstances.

Your adviser creates a Key Facts Illustration (KFI) to outline your Further advance details.
The adviser will then submit the application to us, providing there are further funds available and the product is still available for further lending.
We'll contact you within 2 working days to arrange payment for the valuation fee, if applicable, and instruct a valuation.

Once completed, and received, we will review your valuation report.
We will reconfirm the available loan figures to your adviser.
Once your adviser confirms you are happy with the loan amount, we will send an Offer to you and your adviser.

When you receive your Further advance Offer please read it and check that it meets your needs.
If you wish to accept the Further advance please sign and return the acceptance form at the end of the Offer document.
After receipt of the signed acceptance form, we will process the Further advance.
Completion typically takes up to 5 working days and the funds will be sent to you directly.

Frequently asked questions (FAQ’s)

What’s the interest rate for a Further advance?
The interest rate may be higher or lower than the interest rate on your initial advance. It will be based on the prevailing rate at that time.

Can I apply for a Further advance?
You can only apply for a Further advance if you have no remaining drawdown facility on your lifetime mortgage. The amount you can release depends on your home’s value, your age and your current outstanding balance.

Can I have a drawdown facility with a Further advance?
No, Further advances are lump sum only.

Can I change my adviser from the initial advance?
Yes, you can change your adviser or firm.

How do I apply for a Further advance?
Applications must be made through a qualified equity release adviser.

Are there any fees involved?
Yes. Fees may be included and can be found in your Offer document.

Do I need a solicitor?
No, using a solicitor for a Further advance is your choice.

What’s the cost of the valuation?
Valuation costs depend on your property’s value. For details. please refer to your Tariff of Charges, provided with your initial advice documentation.

How long does the process take?
Usually, it takes about 4 to 6 weeks from application to completion, however it could be longer or shorter depending on personal circumstances.