Additional borrowing

Additional borrowing

Do I have to take advice?

  • You must take advice
  • We need to be sure you’re making the right choice for your circumstances. A financial adviser or broker will be able to talk you through your options in detail and apply on your behalf.

What do I do next?  

  • You should contact your adviser first
  • If you don’t have a financial adviser, Unbiased.co.uk is a good place to start your search
  • Your adviser will discuss all the options with you to make sure the decision is right for you
  • If you decide to go ahead, your adviser will let us know and they’ll need to send us a completed Decision in Principle form so we can assess your ability to repay the additional borrowing. If we approve this, your adviser can then apply by sending us your application and valuation fees
  • You may have to pay to receive financial advice.

Do I need a solicitor? 

+50/RIO/Holiday Let Mortgages

  • If you’re happy for us to instruct our solicitors, we’ll pay for the legal costs. Our solicitor may need to you 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
  • If you want to use your own solicitor, you’ll need to instruct them and you’ll incur the cost
  • If the reason for the additional borrowing requires a change of the title at Land Registry (for example purchasing the property freehold) you’ll need to instruct your own solicitor and you’ll incur the cost
  • If you’re moving home or adding or removing a person from the mortgage at the same time as the additional borrowing, you’ll need to instruct a solicitor. You’ll incur both ours and your solicitor costs.

Retirement Mortgage/Equity Release Mortgages

  • You’ll need to instruct a solicitor to act on your behalf and you’ll incur the cost. You need to have independent legal advice from your own solicitor so you understand the legal implications of borrowing more on a retirement or equity release mortgage
  • We’ll instruct a solicitor to act on our behalf. Our solicitors need to be satisfied with all matters relating to the title of the property
  • If you’re moving home or adding or removing a person from the mortgage at the same time as the additional borrowing, you’ll incur both our and your solicitor costs.

Will I have to pay any fees?

  • You may need to pay a fee of £250 for us to arrange the additional borrowing, depending on the product you choose for the additional borrowing. We also have fee free products. You can pay this when you submit your application or add this fee to your loan on completion
  • We’ll need a valuation of your property and you may need to pay a fee for this depending on the property purchase price/value
  • You may need to pay a legal fee. Refer to ‘Do I need a solicitor?’ for further information.
  • You’ll need to pay your financial adviser for the cost of providing advice
  • Please see our tariff of fees and charges.

How long does the process take?

  • Once we receive the application form and fees, it takes a few weeks to issue you with a mortgage offer. This depends on how quickly we receive an updated valuation of your property and we may ask your adviser for information so we can assess your ability to repay the additional borrowing
  • Once our solicitor receives our mortgage offer which instructs them to act, it takes up to three months to complete and for you to receive the additional borrowing funds.

How do I start the process?

50+/RIO/Retirement Mortgages

  • Your adviser will need to send us a decision in principle form for us to assess your ability to repay the additional borrowing
  • If we approve the decision in principle, we’ll tell your adviser what information we need to progress the application. We’ll need a completed application form submitted by your adviser, together with our administration and valuation fees.

Holiday Let/Equity Release Mortgages

  • Your adviser will need to send us an application form, together with our administration and valuation fees, if applicable
  • For a holiday let mortgage, we’ll let your adviser know if we require an up to date letter from a holiday let agency with the expected rental income.

What happens next?

  • Once we’ve verified your ability to repay the additional borrowing, we’ll need an up-to-date valuation report. We may need a valuer to visit the property
  • We’ll review the valuation report to assess your property and its current value
  • If the valuation report is acceptable, we’ll issue a mortgage offer and will send this to you and to our solicitor to instruct them to act
  • Once our solicitor is happy to proceed to completion, they’ll let us know the date you want the additional borrowing funds to be released to you.

Documents:

  • Origination Application Form
  • Holiday Buy to Let Origination Application Form
  • Tariff of Fees and Charges

If you have any other questions, please contact us using the details below or speak with your adviser.

Contact Details:

Tel: 0800 731 4076

Email: contractvariations@hodge.co.uk

Important documents

Origination Application Form

Holiday Buy to Let Origination Application Form

Tariff of Fees and Charges