Mortgage Options Guide
Further Advance vs Remortgage:Which One Raises Funds More Efficiently?
Comparing two ways to borrow more against your property—and when staying with your lender may make sense.
Featured insight
Choosing between additional borrowing or a complete remortgage.
If you want to borrow more against your property, you may be offered a further advance by your current lender—or you could look at a remortgage.
- Further advance: additional borrowing from your existing mortgage lender, usually on a separate rate/repayment basis.
- Remortgage: replace your current mortgage with a new deal (same lender or a different one), potentially including extra borrowing.
Both are secured on your home.
Quick comparison
| Feature | Further advance | Remortgage |
|---|---|---|
| Who provides it? | Your current lender | Your current lender or a new lender |
| What happens to your current mortgage? | Stays in place; extra borrowing is added | Replaced with a new mortgage |
| Rate structure | Often a different rate from your main mortgage | Avoids multiple rates by consolidating into one (typically) |
| Fees/admin | Often simpler than a full remortgage (varies) | Can involve valuation, legal work, product fees |
| Best when | You want to stay put and the offer is competitive | You want a better deal overall or to restructure borrowing |
When a further advance may suit you
A further advance can make sense if:
- You want to stay with your current lender and avoid switching.
- Your lender's further advance rate is competitive.
- You'd rather not replace your main mortgage (especially if you're in a good deal).
Your lender will still assess affordability and your current financial position.
When a remortgage may suit you
A remortgage may be better if:
- Another lender offers a much better overall deal.
- You want to simplify to one rate/payment structure.
- You're trying to reduce monthly costs (where possible) by improving the interest rate or term—while keeping an eye on the total cost.
Important considerations
- ERCs: If you remortgage during a fixed period, you might pay early repayment charges. A further advance may avoid changing the main mortgage.
- Multiple sub-accounts: A further advance can mean you're repaying different parts of your mortgage at different rates.
- Total cost vs monthly payment: Always compare both.
- Timescales: Both vary; a further advance can be quicker in some cases, but it depends on lender processes and your situation.
FAQs
Is a further advance cheaper than a remortgage?
Not automatically. It depends on the rate offered, fees, and whether a remortgage triggers ERCs.
Do I have to use the money for a specific purpose?
Some lenders have criteria around how funds can be used. If you're consolidating debts, lenders may ask for details.
Will I need a full mortgage application?
You'll usually face affordability checks and paperwork either way; the depth can vary by lender and whether you're switching.
Next step
Compare the rate, fees, ERCs, and total cost side by side. If the numbers are close, the "best" option often comes down to whether you want to switch lenders or keep your current mortgage untouched.
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Your home may be repossessed if you do not keep up repayments on your mortgage or any other debt secured on it.