Additional Borrowing is now available through eMortgages.

You now have the option to submit an Additional Borrowing application through eMortgages on behalf of any eligible clients with an existing Skipton mortgage via our automated online process.

This means we could provide Additional Borrowing either when your client's current product comes up for maturity (with a product transfer) or during the current product term (standalone).

Plus, you'll be paid a procuration fee for any Additional Borrowing business you introduce to Skipton in this way. The gross fee will be the same as the current product transfer rates - 0.30% on Residential and 0.35% on Buy to Let.

Eligibility criteria

You'll need to check your client's eligibility before applying for Additional Borrowing:

  • Minimum Additional Borrowing loan of £10,000 applies.
  • Your client must have made six months consecutive mortgage payments before applying for Additional Borrowing. They must not be in arrears or have had more than one missed payment within the last 12 months or have exceeded two missed months in the last two years.
  • Affordability is calculated on the total new loan amount, not just the Additional Borrowing.
  • Your client can't take out Additional Borrowing if they don't pay by Direct Debit.
  • Available on selected products in our remortgage and retention ranges.
Top 5 things to know
  1. It's a single stage application process. There's no Decision in Principle (DIP) required, although we do recommend you enter the new total into our affordability calculator for an indication as to how much we could lend.
  2. You can select any eligible remortgage or retention products.
  3. Additional Borrowing is also available on Interest Only – be aware the repayment strategy for the whole loan will be reassessed.
  4. A hard credit search will be carried out at the full mortgage application stage and the request checked against our internal scorecard.
  5. Once you've submitted an application, you have five working days for your client to sign and return all supporting paperwork. You can send these to us using the scan and upload facility on eMortgages.

FAQs

How long does my client need to have had a Skipton mortgage before applying for Additional Borrowing?

Your client must have made six months consecutive mortgage payments before applying for Additional Borrowing.

They must not be in arrears or have had more than one missed payment within the last 12 months or have exceeded two missed months in the last 2 years.

What is the minimum amount to borrow?

Minimum Additional Borrowing loan is £10,000.

For what purposes can Additional Borrowing be requested?

We will allow Additional Borrowing for most things apart from for business purposes and debt consolidation. For Buy to Let, unsecured debt consolidation or borrowing for business purposes are not permitted.

Where can I find the criteria for capital raising?

Full criteria for capital raising can be found on our A-Z Lending Criteria.

Is Additional Borrowing available on Consent to Let?

Yes. Your client can do Additional Borrowing if there is a Consent to Let on the property.

How and when will the procuration fee be paid?

Procuration fees on Additional Borrowing and Product Transfers will always be paid separately. This will usually be two weeks after the Additional Borrowing or, for product transfers, two weeks after the product transfer, has completed.

The procuration fee for Additional Borrowing will be calculated on the amount of the Additional Borrowing loan.

Gross procuration fees will be paid in line with our normal payment arrangements i.e. either to Network or Mortgage Club.

Can I apply for my client's Additional Borrowing online?

Yes, you now have the option to apply on eMortgages. Your client also has the option to apply direct; however, a procuration fee to the intermediary will not apply.

What does my client need to do if they are querying the valuation?

We will confirm the current index linked valuation of the property, based on the original valuation.

If your client believes the valuation should be higher and there is sufficient reason to believe the property is worth more (e.g. extension) you will need to contact our service centre on 0345 601 6683 or contact us via web chat.

Why might my clients need a conveyancer for Additional Borrowing?

This will depend on each client's individual circumstances. Examples of when you might need to input a conveyancer from our panel would be:

  • Repaying a 2nd Charge
  • Purchase of Land
  • Purchase of Equity or Freehold
  • Any other change affecting the title.
Can we use products with free legals for Additional Borrowing?

Yes. However, the free legals relate to standard conveyancing work to register Skipton Building Society as the lender on the title for remortgages. If a solicitor is required for an additional borrowing application where there are any of the examples given the FAQ above, 'Why might my clients need a conveyancer for Additional Borrowing?', your client will be required to arrange and pay for these elevated legal service fees.

What happens if the Additional Borrowing is referred?

The application will be looked at by our underwriters. We will be in touch, but if you'd like discuss your client's case please call our broker support team on 0345 601 6683 or contact us via web chat. We will aim to complete DIP referrals within 2 hours of receipt (within working days).

What happens if the Additional Borrowing is declined?

If the application is declined because it does not meet our lending policy, your client can call Skipton Direct on 0345 607 9842 for further information. If you'd like to discuss it as a broker, you can contact our broker support team via web chat or by calling 0345 601 6683 for further information.

If the application has been declined, eMortgages will let you know if you are still able to carry out a product transfer as a standalone request. For a product transfer, you'll be directed to restart the journey on our product transfer page. Your client's data will have been saved but you'll have to repeat some of the product transfer request section. You’ll need the current mortgage balance from your client. Maturing customers will have received this in a letter, otherwise your client will have to request this. You'll also need to confirm during the transfer process on eMortgages that you have their consent. This is so we can release their information to you. We'll also contact your client to let them know you’ve started the transfer.

What happens when my client's Additional Borrowing is accepted?

Once you've submitted, you have five working days for your client to sign and provide the following paperwork to Skipton:

  1. If applicable, Product Transfer Contract Variation Offer (client to sign).
  2. Supporting documents - details of what is needed will be provided on submission.

You can send these to us using the scan and upload facility on eMortgages.

Do you send a text to let me know that the Additional Borrowing has gone through?

Yes, we'll send you alerts as usual at key milestones.

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