There are two methods commonly used to raise more money against your home. You might already have a good deal or, perhaps, be locked into a mortgage for a period of time. Either way there may still be options available to you.
You can ask your existing lender to borrow more money. Called a Further Advance, this can be available to some, but not all borrowers. For example, some lenders do not permit a Further Advance if you have had your existing mortgage for less than six months.
With a Further Advance, your current mortgage is left untouched, and you borrow additional funds. Generally when applying for a Further Advance, you will be required to prove your income, and ability to keep up the additional repayments. The Further Advance will, essentially, be a new product at a new borrowing rate.
An alternative option is to apply for a Secured Loan. This loan will be provided by a different lender to your existing mortgage lender. This lender may be able to lend you additional funds by securing a loan against your property. This is known as a second charge. The interest rates on secured loans are normally higher but if your current lender is unable to lend you additional money, a secured loan lender may be able to assist.
One further consideration when borrowing additional funds, is to ensure any life or critical illness cover you have is sufficient to cover the additional borrowing. Speak to Gareth about this if you are unsure.