Additional borrowing (further advance)

If your client already has an existing residential mortgage with Nationwide and wishes to borrow additional funds, you can now apply on NFI Online, unless the reason for borrowing is to pay off a subsequent charge on their property, in this case they will need to complete this transaction directly with Nationwide. Please see below to check they’re eligible to borrow more funds and read all the information which may be relevant to the case.

Eligibility

Below are some of the key eligibility criteria:

The property ownership type is standard
No more than two applicants
All applicants names (including middle names) that are currently held, are correct*
No mortgage account is more than one month in arrears
Repayment basis of the new lending is capital and interest
There are no subsequent charges on the mortgaged property at the time of starting the application (including Help to Buy equity loans)
The completion of your clients original purchase/remortgage application (or a transfer of equity for an existing Nationwide customer) must be at least 180 days prior to commencing an additional borrowing application
The property isn’t let (some exceptions apply**)
The existing mortgage is paid by Direct Debit
The existing mortgage account has not got a nominal balance.

On some historic mortgage accounts you'll be unable to process additional borrowing applications and these will be flagged in NFI Online. Please contact us directly to discuss options.

* Before starting an additional borrowing application, you must make sure that any incorrect names have been amended directly with Nationwide.

** We'll allow applicants who are letting the property and applying for additional borrowing if they're a member of the armed forces for essential or green improvements to the security address or for applicants who are critically ill.

Borrowing reasons

The minimum additional lending amount is £10,000 for all reasons except home improvements, which has a minimum lending of £5,000.

Please see the below table for the acceptable additional borrowing reasons:

Borrowing reasons†	Max LTV	Max LTV (Second property)
Repay unsecured debts	80%	80%
Non structural home improvements	90%	85%
Structural home improvements	90%	85%
Buy a share in the freehold	90%	85%
Buy out partners interest (non borrower)	90%	85%
Buy freehold title or new extended lease	90%	85%
Buy land to extend security	90%	85%
Other personal consumption	90%	85%
Purchase land/property separate from the security (additional borrowing is not acceptable for the purpose of buying a property/land that'll then be let out)	90%	85%

† If additional borrowing is for more than one reason, the lowest LTV will apply. For any reasons outside of the above options, your client may be able to take out additional borrowing directly with us.

Making energy efficiency improvements

If your client would like to borrow more money to improve their property’s energy efficiency, a Green additional borrowing product will give them a lower initial interest rate than our standard additional borrowing products.

Mortgage Term

The minimum mortgage term for additional borrowing is two years. The maximum term is 40 years, which is 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 upon completion the additional borrowing will not exceed the main account.

If your client needs to increase their existing mortgage term(s) to enable them to proceed with an additional borrowing application, they'll need to follow the online process prior to commencing the additional borrowing application. In most cases, the term change will take place on the 1st of the following month.

If the mortgage repayment type is on an interest only or part and part basis, you'll be unable to change the term of the mortgage. If your client would like to change the repayment basis of any existing part of their mortgage, this must be done directly with Nationwide before starting any additional borrowing applications. Please note if the term change is required prior to the 1st of the following month, or it takes any applicant past their declared retirement age, the term change will need to be completed directly with Nationwide.

You won't be able to start the additional borrowing application until the term change has taken effect and the subsequent payment has been taken. If you've already started an additional borrowing application prior to the term change taking effect, you'll need to create a brand new case.

If following your clients term change, the additional borrowing application is declined for any reason, you'll be able to apply to change the mortgage term back directly with Nationwide or through the online process.

Overpayment Reserve This will reveal additional content

Overpayment reserves can impact the LTV of an additional borrowing application, which in turn can impact the available products.

If a client chooses to and they're able to remove the overpayment reserve, they can complete the overpayment reserve removal form. If the Overpayment reserve is not impacting the available products, they may choose to keep the overpayment reserve in place for flexibility of payments in the future.

Customers can choose to, with prior permission from Nationwide, utilise their overpayment reserve to lower future monthly mortgage payments should they wish. If their mortgage product was taken out with Nationwide on or before 3 March 2010, they may have the ‘borrow back’ facility to quickly access their overpayment as a lump sum. Before completing an overpayment reserve removal form, please make sure your client is aware that by removing the existing overpayment reserve, they'll not be able to utilise it for future underpayments or borrow back.

Overpayment reserve Overpayment reserve removal form

Bank details and Release of funds This will reveal additional content

The existing bank details held will be used to:

collect the applicant’s mortgage payments by Direct Debit
pay any cashback if the selected product includes this
pay the additional borrowing funds requested in this application, upon completion.

Once we’ve issued your applicant’s mortgage offer, our nine day reflection period will start from the date stated on your offer. Once these nine days have passed, we’ll transfer the funds to the existing bank account held.

Additional borrowing with rate switch This will reveal additional content

Where your client wants to complete a rate switch and apply for additional borrowing (further advance), you'll need to complete two separate applications.

You must 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 an additional borrowing application is keyed within 30 days of submitting the Rate Switch application, no additional product fee will be payable. Both cases must be submitted by the same intermediary firm and be in the same customer names.

If an application for additional borrowing is submitted before a rate switch application, this may affect the LTV and products available, and an additional product fee may be payable.

We can't guarantee an additional borrowing application will be approved prior to your chosen rate switch start date. This means, in the event of an additional borrowing application being declined and the rate switch having already gone live, you would be unable to cancel the rate switch without incurring Early Repayment Charges (ERCs).

You should ensure when selecting the rate switch start date that you leave enough time for the additional borrowing application to be fully underwritten, allowing sufficient time for your client to cancel their rate switch if required.

Valuations This will reveal additional content

You can input an estimated value of your clients property on the loan requirements screen. We’ll attempt to value the property using an Automated Valuation Model (AVM) but we may require a Further Advance Revaluation Report, which'll involve a physical inspection of the property.

If you're completing a rate switch application at the same time as an additional borrowing application, you can input an estimated property value in the loan requirements screen of the additional borrowing application, this will not change the value we hold for the rate switch application.

If you wish to appeal the valuation for a rate switch application or following a physical inspection, please follow the valuation appeal process.

Valuation appeal process

Exception Processes This will reveal additional content

We'll allow applicants who are letting the property and applying for additional borrowing if they're a member of the armed forces for essential or green improvements to the security address or for applicants who are critically ill.

Product finder

Search for the best deals we can offer your client.

Product finder

NFI Online

Use NFI Online for new cases, Mortgage Illustrations, DIPs and case tracking.

NFI Online

Affordability calculator

Find out the maximum additional borrowing your client(s) can borrow before completing a DIP.

Use our affordability calculator