Additional Borrowing

Additional Borrowing is available through eMortgages

You have the option to submit an Additional Borrowing application through eMortgages on behalf of any eligible clients with an existing Skipton mortgage.

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:

  • A minimum Additional Borrowing loan of £5,000 is permitted for Green Additional Borrowing products (for which at least 50% of the amount borrowed must be spent on energy efficient home improvements), and for Shared Ownership mortgages where the loan is to be used for staircasing and for debt consolidation (on residential mortgages only where the whole loan is to be used for debt consolidation).
  • For all other Additional Borrowing products a minimum loan of £10,000 applies
  • Your client must have made six months' consecutive mortgage payments before applying for Additional Borrowing. They must not have had any mortgage or secured arrears in the last six months, or have exceeded two missed months' mortgage payments in the last two years
  • Affordability is calculated on the total new loan amount, not just the Additional Borrowing
  • Where funds are being requested for Green home improvements, quotes and estimates will be required to cover the full amount of the improvements
  • Your client can't take out Additional Borrowing if they don't pay by Direct Debit
  • Available on selected products in our remortgage and existing customer ranges.

Top 5 things to know

  1. It's a single stage application process. There's no Decision in Principle (DIP) required.
  2. You can select any eligible remortgage or existing customer 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.

Frequently Asked Questions

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

They must not have had any mortgage or secured arrears in the last six months, or have missed more than two months mortgage payments in last two years.

Minimum Additional Borrowing loan is £10,000. A minimum Additional Borrowing loan of £5,000 is permitted for green home improvements (subject to the availability of our Green Additional Borrowing products) for Shared Ownership mortgages where the loan is to be used for staircasing and for debt consolidation (on residential mortgages only where the whole loan is to be used for debt consolidation).

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

Additional Borrowing for debt consolidation purposes is acceptable on residential mortgages subject to a minimum loan of £5,000, a maximum loan of £50,000 and a total maximum LTV of 85%. Debt consolidation applications are not acceptable where the repayment method is Interest Only or if your client has already received an additional borrowing loan for debt consolidation purposes from the Society within the last 3 years. When assessing debt consolidation applications, 50% of the debt balance that is to be repaid with the Additional Borrowing will be factored in as an ongoing commitment as part of the Underwriting process.

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

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

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.

Yes, you have the option to apply on eMortgages.

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.

Yes, however, regardless of whether the product offers no charge for standard legal conveyancing as a product incentive, if a solicitor is required for Additional Borrowing the customer will need to pay for any elevated service fees relating to changes to the title. Where this is required the customer can choose a conveyancer from our panel.

The application will be reviewed by one of our underwriters. We will be in touch, but if you'd like to discuss your client's case, you can call our Broker Support team on 0345 601 6683 or contact us via web chat.

If the application is declined and you would like to discuss the decision you can contact our Broker Support Team by web chat or on 0345 601 6683.

The eMortgage system will let you know if the application is declined but still able to carry out a Product Transfer as a standalone request. For this 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.

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.

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

Additional Borrowing mortgage offers are valid for 1 month (6 months for Shared Ownership mortgages).

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0345 601 6683