Further advance
Last checked UK · illustrative onlyNot a lender or brokerAboutDisclaimer
Published by Rodway Labs — not a mortgage adviser
Published · Last revised
Further advance: Extra borrowing from your current lender, secured on the same property, alongside the existing mortgage.
The balance goes up and the property is still the security. You are not redeeming the loan and starting again with a different lender. The lender rechecks affordability, payment history and the new loan to value, and can decline even if every payment so far has been on time.
The extra money is often on its own product, with its own rate, fee and early repayment terms, while the original mortgage keeps its existing deal. You can end up with two rates on one property. The illustration for the advance is the document that states this.
Example: what borrowing £20,000 more does to LTV
- Today
- £185,000 balance on an illustrative £250,000 value = 74% LTV · equity £65,000
- After a £20,000 further advance
- £205,000 ÷ £250,000 = 82% LTV · equity £45,000
- Largest advance that stays within 75%
- £2,500
Illustrative only, using the site LTV calculator. The £250,000 value is an example, not a valuation. There is no rate or payment here: the site does not price further advances, and a made-up rate would look like a quote.
How it affects a remortgage
LTV moves because the balance moves. In the example, the advance takes the loan from inside a typical 75% band to above it, which can change the products the lender will show you, including on the existing loan if you are switching deal at the same time.
It is not a product transfer, which changes the deal on the balance you already owe, and not a remortgage, which pays the old loan off. It is also not a second charge, which is a separate loan from another lender. If you are comparing a further advance with remortgaging a larger amount elsewhere, fees and any early repayment charge on the current deal come first. A same-lender advance often leaves the old charge untouched, but the offer decides.
Borrowing more is a larger debt secured on your home. If you want advice on whether it fits your situation, speak to an FCA-authorised adviser and read the illustration before you sign.
Example: the payment on a £20,000 advance
- Advance
- £20,000 over the remaining 22 years
- At the site example 5.97%
- about £136.26 a month on top of the existing payment
- Interest on the advance over 24 months
- about £2,336
- LTV after the advance on £250,000
- 82%
Illustrative only. 5.97% is the labelled site example, used to show the shape of the cost, not a price for further advances.
Common mistakes
- Assuming a same-lender advance skips checks. The FCA notes that the lighter same-lender route applies when you are not borrowing more; an advance brings affordability back in.
- Rolling short-term debts into the mortgage without counting the term. MoneyHelper warns that even though mortgage rates are normally lower than loan or card rates, you might pay more overall over a longer term.
- Forgetting the second end date, if the advance sits on its own deal.
- Ignoring the LTV jump, which can affect pricing on the existing loan if you are switching at the same time.
Edge cases
- Comparing with a remortgage. Borrowing the larger sum from a new lender redeems the old loan, so any ERC on the current deal comes into it.
- Debt consolidation. MoneyHelper suggests prioritising and clearing other loans separately rather than adding them to the mortgage, because of the longer term.
- Interest-only. The FCA notes interest-only borrowing needs a credible repayment plan.
- Drop in income. MoneyHelper notes a lower income since the original mortgage can mean failing the affordability assessment, which applies to an advance as well.
Where to go next
- LTV & equity calculator — add the extra amount and see the new ratio.
- LTV bands explained — why crossing a band edge matters.
- Product transfer — the rate switch that often sits alongside an advance.
- Credit and affordability when switching — what the lender rechecks.
Sources checked 2 November 2026
- MoneyHelper: remortgaging to cut costs — remortgage and product transfer definitions, switching costs, LTV formula, valuations, porting and negative equity.
- FCA: support with mortgages and interest rates — offers typically valid 3 to 6 months, reversion rates, same-lender switches, ERCs and stress testing.
Figures marked example are illustrative only, not a quote and not lender, broker or FCA-regulated advice. Definitions are plain English for this site, not the wording in your offer. The definitions and explanations are in our own words. Last checked 2 November 2026.