Additional borrowing (further advance)
Eligibility
- Tick icon Has an existing Nationwide branded residential mortgage.
- Tick icon Pays their monthly payments by Direct Debit.
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Maximum of two applicants. Applicants names, including middle names, must be correct in our records. Your client must contact Nationwide directly to update any incorrect or missing names.
Their property:
- Tick icon The mortgaged property ownership type is standard.
- Tick icon There are no subsequent charges on the mortgaged property when you start the application. This includes Help to Buy equity loans. If your client wants to use the additional borrowing to pay off a subsequent charge on their property, they'll need to speak directly with Nationwide.
- Tick icon Is not let, except if they are a member of the Armed Forces, critically ill, or making green improvements to the security address.
Their current mortgage:
- Tick icon Can be no more than one month in arrears.
- Tick icon Must have been taken out at least 180 days ago.
- Tick icon Must not complete in the next 180 days.
Their additional borrowing:
- Tick icon Must be on a repayment basis. Additional borrowing is not available as Interest Only or Part and Part.
- Tick icon Must be for specific purposes. For acceptable borrowing reasons and LTV restrictions, see our Loan purpose criteria page.
- Tick icon If your client is repaying unsecured debt, we may require proofs. See our Outgoings page for details.
How to apply
In most cases, you can apply through NFI Online. If you need to amend an additional borrowing application, you can do this through the 'Amend case' option on NFI Online. You can only submit one additional borrowing application at a time.
On some historic mortgage accounts, such as those with a nominal balance, you'll be unable to submit additional borrowing applications. You'll see these flagged in NFI Online. Contact us to discuss your client's options.
Release of funds
There is a nine day reflection period from the date stated on your client's mortgage offer. Funds will be released after this period.
Your client's existing bank details held will be used to:
- collect their mortgage payments by Direct Debit
- pay any cashback included with the selected additional borrowing product
- pay the additional borrowing funds requested upon completion.
Borrowing amounts and LTVs
Our minimum additional lending amount is £10,000 for all reasons except home improvements, which has a minimum lending of £5,000. LTVS vary by loan purpose.
Note:
An overpayment reserve can impact the LTV of your client's additional borrowing application.Mortgage term
The minimum term for additional borrowing is two years. The maximum term is 40 years, subject to our lending into retirement criteria.
The term for the new lending must be at least two months shorter than the main mortgage account. This allows time for the additional borrowing application to be processed, so the additional borrowing will not have a longer term than the main account.
If your client needs to increase their existing mortgage term to take out additional borrowing, they'll need to use our online Mortgage Manager to change this first.
Your client will not be able to change the term if their current mortgage is Interest Only or Part and Part. If the term they need for their additional borrowing is longer than their current mortgage term, they could change the repayment type directly with Nationwide and then extend the term. Both of these changes need to be completed before applying for additional borrowing.
After term change has taken effect and your client has made one payment, you can start the additional borrowing application.
If we decline an additional borrowing application for any reason after a term change, your client will be able to apply to change the mortgage term back directly with Nationwide through Mortgage Manager.
The term for the new lending must be at least two months shorter than the main mortgage account. This allows time for the additional borrowing application to be processed, so the additional borrowing will not have a longer term than the main account.
If your client needs to increase their existing mortgage term to take out additional borrowing, they'll need to use our online Mortgage Manager to change this first.
Your client will not be able to change the term if their current mortgage is Interest Only or Part and Part. If the term they need for their additional borrowing is longer than their current mortgage term, they could change the repayment type directly with Nationwide and then extend the term. Both of these changes need to be completed before applying for additional borrowing.
After term change has taken effect and your client has made one payment, you can start the additional borrowing application.
If we decline an additional borrowing application for any reason after a term change, your client will be able to apply to change the mortgage term back directly with Nationwide through Mortgage Manager.
Additional borrowing with rate switch
If your client wants to complete a rate switch and apply for additional borrowing, you'll need to complete two separate applications.
You should submit the Rate Switch application first. The rate switch products available will be based on the Loan to Value (LTV) without the additional borrowing. If you submit an application for additional borrowing before a rate switch application, this may affect your client’s LTV and products available.
We cannot guarantee approval of an additional borrowing application before your client’s rate switch start date. This means you would be unable to cancel the rate switch without incurring Early Repayment Charges (ERCs) if an additional borrowing application is declined and the rate switch has already gone live. You should select a rate switch start date that leaves enough time for the additional borrowing application to be processed.
You should submit the Rate Switch application first. The rate switch products available will be based on the Loan to Value (LTV) without the additional borrowing. If you submit an application for additional borrowing before a rate switch application, this may affect your client’s LTV and products available.
We cannot guarantee approval of an additional borrowing application before your client’s rate switch start date. This means you would be unable to cancel the rate switch without incurring Early Repayment Charges (ERCs) if an additional borrowing application is declined and the rate switch has already gone live. You should select a rate switch start date that leaves enough time for the additional borrowing application to be processed.
Green Additional Borrowing
If your client would like to borrow more money to improve their property’s energy efficiency, Green Additional Borrowing will give them a 0% initial interest rate.
You can also apply sooner than standard additional borrowing, after your client’s first monthly mortgage payment has been made instead of after 180 days.
You can also apply sooner than standard additional borrowing, after your client’s first monthly mortgage payment has been made instead of after 180 days.
Eligibility
- Tick icon Your client must have a Nationwide branded mortgage.
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Your client must have made their first payment on their Nationwide mortgage.
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The term of cannot be longer than the term of your client's existing mortgage.
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The improvements they want to fund cannot make the property uninhabitable during installation.
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The improvements cannot include structural updates.
For full details of eligible home improvements and how to apply, see our Green Additional Borrowing product page.