Additional Borrowing

Here at Retirement Advantage we offer two different types of additional borrowing; a cash reserve facility drawdown and a further advance. 

If your customer has a cash reserve facility, they will need to withdraw the total amount before they can apply for a further advance.

Cash reserve facility

Your customer can choose to add a cash reserve facility to their lifetime mortgage at the outset. The facility allows customers to withdraw further funds at any time without having to seek financial advice. If they choose to add this feature onto their lifetime mortgage, we'll increase their monthly interest rate by 0.2%.

Your customer can choose when, and how frequently, they drawdown funds from their facility. The minimum withdrawal amount is £2,000 and the maximum is the total of their facility.

They can make a withdrawal at any time, so long as their isn't already an withdrawal application in progress.

If your customer has an interest servicing product, they may be able to choose to make interest payments on their withdrawals. 

Your customer doesn't need a financial adviser to access their cash reserve facility, and can contact us directly to make a withdrawal.

Cash reserve facility withdrawals can take up to 21 days to complete, but if your customer returns the paperwork to us promptly they can complete in a much shorter time.

For more information about our cash reserve facility, please see our Lifestyle OptionsInterest Select Options and Voluntary Select Options product guides.

Further advance

If your customer wants to borrow further funds they can apply for additional borrowing at any point provided the application meets our current lending criteria, the original loan is registered at the Land Registry and sufficient property equity exists.

If your customer would like to apply for a further advance, they will need to obtain independent financial advice. 

How to apply for a further advance

To start the application, please send an email to our underwriters and request a Key Facts Illustration, confirming the following details:

  • The additional borrowing loan amount (a specific amount or the maximum amount available).
  • If you would like the loan to be on an interest paying or interest roll-up basis. If interest paying, please confirm the amount they wish to pay (for example, the full interest).
  • If you would like a new property valuation to be carried out (if so, a valuation fee will be payable)
  • If you are charging an advice fee, and if so, the amount.

Please note:

  • The minimum amount which can be taken is £4,000.
  • Your customer must remain on their original product. For example, if they currently have an Interest Select Lite product, they cannot move to an Interest Select Gold product, they must remain within the LTVs available to Interest Select Lite.
  • If your customer has a cash reserve facility, they can't apply for a further advance until they have cleared their facility.

Interest rates

You can view our current additional borrowing interest rates here.