A guide to borrowing more on your mortgage

 Borrowing more on your mortgage could be a way to raise funds. It’s important to know how it works, what lenders look for and what it might mean for your future payments.

This guide explains:

• What it means to borrow more on your mortgage
• How much you might be able to borrow
• The difference between borrowing more and remortgaging 
• How repayment works for different mortgage types 
• Common reasons people borrow more
• What lenders check before they say yes
• Risks to consider before you apply

What does it mean to borrow more on my mortgage?

Borrowing more on your mortgage means increasing the amount you owe when you remortgage. If you ask your lender for a bigger loan, your total mortgage debt goes up.

You can use the extra money for things like home improvements, a new car or helping to pay for your child or grandchild’s wedding. You may have to pay an early repayment charge to your existing lender if you remortgage.

How much can I borrow?

The amount you can borrow depends on a few key things:

• Your finances. You might be able to borrow more if your income has gone up or your credit score has improved. 
• Your mortgage balance. This is how much you still owe on your current mortgage. 
• Your equity. This is the difference between your home's value and what you owe. If your home's value has gone up, you may have more equity. 
• Your property value. The lender will check your home's value to make sure it’s high enough to support a bigger loan.

Each lender has their own rules for how much extra you can borrow. If you're not sure, it's best to speak to them directly to find out what’s possible. 

How long can I take to repay my additional borrowing?

It depends on your lender and the type of borrowing you choose. Sometimes, you’ll repay it over the same term as your current mortgage. Other times, the repayment period might be different.

Here’s how it works for different types of borrowing: 

• Remortgaging. Your new mortgage deal will set out how long you’ll repay the full amount. 
• Mortgage extension. The lender will decide the term based on things like your age, income and how long is left on your current mortgage. 
• Second-charge mortgage. This usually follows standard mortgage terms, based on your income, credit history and how much equity you have in your home.

Additional borrowing vs remortgaging

Additional borrowing and remortgaging are similar, but they’re not the same. Here’s how they differ:

• Additional borrowing. This means borrowing extra money from your current lender and adding it to your existing mortgage. People often use it to pay for things like home improvements.
• Remortgaging. This means switching to a new mortgage deal, either with your current lender or a different one. You might do this to borrow more money, get a better interest rate or change your mortgage terms.

Secured vs unsecured loans

Borrowing more on your mortgage is a type of secured loan. This means the loan is backed by something you own – your home. If you can’t repay it, the lender could take your property to recover the money. In contrast, an unsecured loan isn’t tied to any asset. Because there’s no security, lenders usually charge higher interest rates and may offer smaller loan amounts.

Reasons you might borrow more on your mortgage

When you ask to borrow more on your mortgage, your lender will want to know how much you need and what the money is for.

One of the most common reasons is to pay for home improvements, like a new kitchen or an extension. These upgrades can increase your home’s value over time.

Other reasons might include:

• School fees for children or grandchildren. 
• Large purchases, such as a new car or even another property. 
• Debt consolidation, to combine multiple debts into one. (Think carefully before securing other debts against your home. Your home is at risk if you do not keep up repayments on a mortgage or loan secured on it.)
• Divorce settlement, to help cover legal or financial costs.

Borrowing more on your mortgage isn’t the only way to boost your finances. For other options, check out our guide.

What are the requirements for borrowing more?

To borrow more on your mortgage, you’ll need to meet your lender’s requirements. These usually include:

• Affordability checks. You must show that you can afford the higher monthly payments. Lenders will look at your income, spending and what you plan to use the money for.
• Up-to-date payments. You should be on track with your current mortgage payments.
• Good credit history. A strong credit score helps show you’re a reliable borrower.
• Enough equity. You need to have built up enough equity in your home.
• Time with your current mortgage.  Some lenders require you to have had your mortgage for a set period before you can apply for more.

How long does the process take?

The time it takes to borrow more on your mortgage can vary depending on your lender. In some cases, it might take just a week. But it could take longer, especially if extra checks or paperwork are needed.

The best way to get an accurate timeline is to speak directly with your lender. They can tell you how long the process is likely to take based on your situation.

Risks of borrowing more on your mortgage

Borrowing more on your mortgage can be helpful, but it also comes with risks. Here are some things to keep in mind:

• Risk of repossession. The extra borrowing is secured against your home. If you can’t keep up with repayments, your home could be at risk.
• Reduced equity. Equity is the difference between your home’s value and what you owe. Borrowing more reduces this gap.
• Higher interest costs. If you extend your mortgage term, you may end up paying more interest over time.
• Impact on future remortgaging. Taking on more debt could make it harder to remortgage later.
• Extra fees. You might have to pay admin fees or charges for leaving your current mortgage deal.

How borrowing more affects different types of mortgages

Here’s a breakdown of what borrowing more means for different types of mortgages.

Fixed-rate mortgages

If you borrow more on a fixed-rate mortgage, you will get an interest rate based on what’s available when you apply. It can be different to the rate on your existing deal, so you could have two different rates.

Variable-rate mortgages

If you borrow more on a variable-rate mortgage, your monthly payments may go up. The interest rate can change over time, so your extra repayments might rise or fall depending on the market.

Interest-only mortgages

If you borrow more on an interest-only mortgage, you’ll owe more money overall. This means your monthly interest payments could go up. Some lenders might also ask you to switch to a repayment mortgage, which would make your monthly payments much higher.

Joint mortgages

You owe more money and both parties who made the application are liable for the extra repayments.

Can you borrow more on your mortgage with a poor credit score?

It’s possible to borrow more even if your credit score isn’t great. But it can be harder to get approved. Lenders may ask for a bigger deposit or offer you a higher interest rate to reduce their risk.

If you're worried about your credit score, it’s a good idea to speak with a mortgage advisor. They can explain your options and help you find a deal that suits your situation.