Additional borrowing

How do I submit an Additional Borrowing application?

• You’ll need to ensure that you are registered with us through our Hodge Broker Portal.
• You’ll need to complete an Additional Borrowing application through our online portal and will need to send us any product or valuation fees
• Our Contract Variations Team will do an initial review and pass you to a dedicated underwriter, who’ll handle the case from start to finish
• Once the loan completes, you’ll receive your procuration fee.

How long does the process take?

• Once we receive the application form and fees, it can take a few weeks to issue the mortgage offer
• It depends on how quickly we receive the updated valuation and if we need additional documentation to support affordability assessments
• If a solicitor is needed, once our solicitor receives our mortgage offer it can take up to three months to complete and for your client to receive the Additional Borrowing funds. Where a solicitor isn’t needed, once we receive the signed offer from your client, they can choose when to receive the funds.

What fees are payable by my client?

• Depending on the product they choose, our product fees are either £0 or £250
• This can be paid by cheque or bank transfer when the application is submitted or can be added to the loan on completion
• We’ll need a valuation of the property and if the property value is below £1m the valuation is free, if it’s over £1m there’ll be a fee
• Your client may also need to pay a legal fee.

Do they need a solicitor?

• They may need a solicitor to act for them. This will depend on the date of the original mortgage offer and the purpose of the Additional Borrowing.
  • If the original mortgage offer was on or after 22nd June 2020, your client will not need to instruct a solicitor
  • If the original mortgage offer was before 22nd June 2020, your client will need a solicitor. If they’re happy for us to instruct them, we’ll pay the legal costs
  • If the purpose of the Additional Borrowing requires a change of title at Land Registry (for example purchasing land or the property freehold) your client will need to instruct their own solicitor to act for them and they’ll have to pay their fees. We’ll instruct our solicitor to act for us. Your client may have to pay some of our legal costs
  • If your client is moving home or adding or removing a person from the mortgage at the same time as the Additional Borrowing, they’ll need to instruct a solicitor. They’ll have to pay both our and their solicitor costs
• Our solicitor may need them to sign a new Mortgage Deed for the Additional Borrowing, and they’ll also need to be satisfied with all matters relating to the title of the property.

How much can they borrow?

• Your client can borrow in line with maximum LTV stated in their original agreement
  The minimum loan amount for Additional Borrowing is £5,000.

Additional Borrowing criteria

• We’ll assess the reason for borrowing the same way as we do for new business, so won’t approve for any high-risk activities including to support a new business start-up, gambling debt or purchase of time share.