Further advances
Your clients can borrow more money against the value of their home. The further advance is secured against their existing Halifax mortgage.
Criteria
Please check the application will meet our criteria before applying:
- Minimum further advance amount is £10,000.
- Further advance not permitted within 6 months of completion of original mortgage.
- No arrears - where the existing mortgage is in arrears a further advance application cannot be accepted. The customer should be advised to bring their account up to date.
- Acceptable reasons for a further advance – see Criteria section for a list of acceptable reasons. Where for debt consolidation consider if there are any second charges on the property e.g. shared ownership schemes. Further advances are not accepted on shared equity schemes.
- Maximum 85% Loan to Value - existing loan plus further advance amount must not exceed 85% LTV; where above 80% LTV (based on current indexed valuation) a revaluation will be required and a revaluation fee will be due.
- Repayment plans – where current mortgage has an Interest Only amount acceptable repayment plan(s) must be held or no further advance will be available.
Benefits: why offer further advances?
- Product options - a choice of tailored mortgage offers based on a number of factors including a client’s current credit profile, usage of their accounts and in some cases, the energy efficiency of their property. Please check your client's mortgage in Mortgage Enquiry and view the Product Finder.
- Combined further advance and product transfer – borrow additional money and switch to a new rate on existing borrowing in a single application.
- Review opportunity - review your clients' finances including their general insurance.
- Case tracking - access to regular email updates from our team on the progress of your case.
- Earn a procuration fee.
New process
Most further advances that don’t include a product transfer will follow our improved process:
- Instant decisioning with a Decision in Principle that has a ‘soft footprint’ credit search.
- Create and review illustrations instantly.
- Save and resume keying
- Ability to amend the loan amount and other details before you submit the application in full.
Risks
Any additional borrowing is secured against your clients' home.