Additional borrowing (further advance)
Additional borrowing applications are not available via MTE.
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.
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 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 or are critically ill.
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:
|Repay unsecured debts|
|Non structural home improvements|
|Structural home improvements|
|Buy a share in the freehold|
|Buy out partners interest (non borrower)|
|Purchase land/property separate from the security|
|Buy freehold title or new extended lease|
|Buy land to extend security|
|Other personal consumption|
**** Please note, 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.
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.
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