A further advance is additional borrowing from your current lender and allows you to borrow more money against your home. The interest rate charged on a further advance is usually different to your original mortgage loan.

A further advance can be a useful option for a borrower if they do not wish to remortgage or switch to another lender and the rates offered for a further advance may be more competitive than other types of loans such as credit cards. If you are currently tied into a product then a further advance can allow you to borrow more without facing hefty early repayment charges.

There may be several reasons why a borrower might consider needing a further advance, such as raising a deposit for a second property or home improvements.

A further advance loan is secured against your property so if you default on payments, you could be at risk of losing your property. Other types of unsecured loans are not tied to your property so you won’t risk losing your home if you default on payments, although any type of arrears will have a bad impact on your credit score and have an effect on your ability to apply for loans in the future.