Additional borrowing (further advance)

Your client

Their property:

Their current mortgage:

Their additional borrowing:

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.

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.

The minimum mortgage term for additional borrowing is two years. The maximum term is 40 years, your retirement age (subject to our lending into retirement criteria), or the existing mortgage term.

For additional borrowing cases, the Mortgage Repayment Plan must cover any existing Interest Only mortgage balance and any new Interest Only borrowing.

• For additional borrowing cases where the existing mortgage is on an Interest Only or Part & Part basis, and the new borrowing is also on an Interest Only or Part & Part basis, the terms must align where sale of main residence is the Mortgage Repayment Plan.
• Where the existing mortgage is on a capital and interest basis and the new borrowing is on an Interest Only or Part & Part basis, the new term can't be shorter than the capital and interest term, where sale of main residence is the Mortgage Repayment Plan (unless it aligns where sale of main residence is the Mortgage Repayment Plan).
• If your client needs to amend an additional borrowing application, this can be done using the 'Amend case' option in NFI Online.

If your client needs to increase the term of an existing mortgage to support an additional borrowing application, and their existing mortgage is on a capital and interest repayment basis, they'll need to follow the online process before starting the additional borrowing application. In most cases, the term change will take effect on the 1st of the following month.

If the existing mortgage, or any part of it, is on an Interest Only or Part & Part basis, you will be unable to change the term online. In these cases, your client will need to contact Nationwide to discuss the term change before starting an additional borrowing application.

If your client would like to change the repayment basis of any existing part of their mortgage, this must also be completed directly with Nationwide before starting an additional borrowing application.

Please note, if the term change is required before the 1st of the following month, or would take any applicant beyond their declared retirement age, it will need to be completed directly with Nationwide.

You won't be able to start an additional borrowing application until the term and/or repayment method change has taken effect, and the first payment under the new term has been taken. If an additional borrowing application is started before the term change takes effect, you'll need to submit a new application once the term change has been completed.

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.

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.

Eligibility

For full details of eligible home improvements and how to apply, see our Green Additional Borrowing product page.