It is recognised that borrower(s) may wish to make home improvements, buy out a further share in their property, consolidate debt, raise capital – for example to release funds to help a child to get on the property ladder, extend a lease or purchase land (adjacent to a property). The Board has agreed that the Society will offer further advances to existing borrower(s) subject to the following criteria:
- The original loan to the borrower(s) must have been held for a minimum of six months.
- The amount of the further advance must be aggregated with the original advance to determine the new LTV for the loan. No further advance is permitted when the aggregate total is above 75% LTV, except where the criteria for mortgage indemnity insurance via AmTrust International has been met. (See Appendix 3).
- A re-valuation may be required in some cases to confirm value of property.
- Below 75% LTV, there is no maximum limit on the amount of the further advance (subject to the maximum overall loan size limits).
- The borrower(s) continue to meet the affordability criteria.
- The Board has not placed a limit on the number or value of further advances made to borrower(s).
- Further advances will not be considered for business purposes or to meet HMRC / Inland Revenue obligations.