Equity Release Further Advance: Can You Borrow More on Your Plan?

If you already have an equity release plan, you may be able to borrow more later on. This is called a further advance. It is not automatic, and not every lender offers it, so it helps to understand how it works before you ask.

What is a further advance?

A further advance lets you release more equity from your home, on top of what you already borrowed. It usually happens when your property has gone up in value, or when you did not take the full amount available when you first took out the plan.

The extra borrowing sits with your existing lender. Your lender has to agree to it, and the amount depends on your age, your property’s current value, and that lender’s loan to value limits at the time.

Why some lenders say no

Not every request for a further advance gets approved. Common reasons include:

• The lender no longer offers further advances on your particular product.
• Your property no longer meets the lender’s current criteria.
• The loan to value limit has already been reached for your age and property value.
• Your plan does not include a guaranteed further borrowing feature.
• Your plan has been taken over by an administrator that no longer offers new lending.

A decline from your own lender does not mean equity release is closed to you. It means that one lender cannot help with your circumstances.

What are your options if your lender says no?

A whole of market adviser can check other lenders on your behalf. Some may still be willing to lend against the same property, even after your existing lender has said no.

Switching to a new lender is usually the only route to extra borrowing, since most equity release lenders hold a first charge and will not allow a second charge behind it. There are usually set up costs, and sometimes an early repayment charge on your current plan, so it is worth checking that a switch still leaves you better off before you commit.

Is additional borrowing on equity release regulated?

Yes. Equity release is regulated by the Financial Conduct Authority. Plans from Equity Release Council members come with safeguards such as the no negative equity guarantee, so you or your estate will never owe more than your home is worth when it is sold.

If you are a homeowner in Derbyshire and your lender has said no to a further advance, our guide to equity release additional borrowing in Derbyshire covers the local picture, including current house prices across the county, and how a whole of market adviser can help.

Frequently asked questions

What is a further advance on equity release?

A further advance is extra borrowing on an equity release plan you already have. It usually becomes available when your property’s value has risen, or when you did not take the maximum amount at the start.

Why did my lender say no to more borrowing?

Common reasons include reaching your loan to value limit, a change in your lender’s criteria, or a plan that has been taken over by an administrator with no further lending to offer.

Can I get a second charge loan instead of switching lender?

Rarely. Most equity release lenders hold a first charge and do not allow a second charge behind it, so switching your whole plan to a new lender is usually the only route to extra borrowing.

How much more could I release?

This depends on your age, your property’s current value, and the lender’s loan to value limits. An adviser can give you a personalised illustration based on your circumstances.

Will switching lender cost me anything?

Usually there are set up costs, and sometimes an early repayment charge on your current plan. A whole of market adviser will work out whether a switch still leaves you better off before you commit.

This is a lifetime mortgage. To understand the features and risks, ask for a personalised illustration. A lifetime mortgage may reduce the value of your estate and could affect your entitlement to means-tested benefits. Think carefully before securing other debts against your home.