Additional borrowing

1) Additional borrowing criteria:

To be eligible for additional borrowing with C&G (a C&G Homeowner Loan), your client will need to be an existing C&G mortgage customer. Your client can take out additional borrowing so long as it’s been at least six months since the completion of the original mortgage or any previous borrowing on the same mortgage.

 

The most your client can borrow in total is 80% of the value of their home. This means that the amount of your client’s existing C&G mortgage and their new loan added together cannot be more than 80% of the value of their home.

 

What additional borrowing can be used for?

 

Additional borrowing can usually be taken out for reasons such as home improvements and debt consolidation. However:

 

• It is not acceptable for a customer to raise funds with a Homeowner Loan to clear their main loan
• Homeowner Loans for debt consolidation are not acceptable for customers over 65.
• It is not acceptable to remove an applicant age 65 or above in order to meet lending criteria if further borrowing is required for debt consolidation.

For buy-to-let additional borrowing applications please read the capital raising on buy-to-let property criteria.

 

Check criteria

 

Before you apply for a Homeowner Loan application it’s important to check to see if your client’s needs meet our criteria. Please read our additional borrowing lending criteria section. Please also see the maximum age policy for customers.

 

For further guidance call our product and policy line on 0845 604 1206

 

 

2) Check how much your clients can afford to borrow

Use our affordability calculator - get a quick guide to how much your client could borrow. 

 

3) What products are available?

For a mainstream Homeowner Loan application we have specific products available from our Additional Borrowing range. These are available for when the extra borrowing takes the total borrowing to a total of £500k.

 

Please note: When the existing borrowing is already £500,001 or more, and when the additional loan takes the total borrowing over £500,001, the additional borrowing must be taken out on a large loan product.

 

• Fixed rates – Here is our current range of fixed rate products
• Tracker rates – Here is our current tracker rates
• Large Loan rates – See our mainstream range which details which products are available
• Buy-to-let rates available for additional borrowing – See our buy-to-let range which details which products are available

4) How to apply

Homeowner Loan applications to C&G must be completed using a paper application form. The following steps will guide on how to submit a case to us.

 

• Key Fact Illustration – simply download the KFI Application form. Once completed simply fax it to 0845 600 2875.
• Full Homeowner Loan Application – simply download the Homeowner Loan Application form. Once completed this must then be posted to us along with payment for any fees using the Mortgage Application Fees form. For further help on how to complete the application form, please follow the instructions on the download page or call us on 0845 603 6082.

5) What fees apply and how to pay

In addition to sending in the Homeowner Loan Application form, you’ll need to complete a Mortgage Application Fees form for the relevant fees. To check what you’re clients will need to pay, please see the list below.

 

Application

A £99 application fee is due for all further advances, except where otherwise stated. For further details see the application fee page.

 

Product Fee

The product fee will be automatically added to the loan amount. If the product fee is a percentage, then it will be based on the additional borrowing only. For further details see the product fee page.

 

Valuation

There are no valuation fees for Homeowner Loans, as we will refer to an index-linked valuation of the customer’s property.

 

Transfer of funds fee

£35 transfer of funds fee is applicable on all Homeowner Loan applications and will be added to the loan amount. See our transfer of funds fee page.

 

Procuration fees

For all Homeowner Loan applications you will receive a minimum procuration fee of £150 as long as your client borrows a minimum of £25k. If they wish to borrow less then you will not receive a payment. See our intermediary payments page for further details.

6) How to track your case

Your processing team will be in regular contact with you about your homeowner loan application; however if you wish to send us further information then you can always send us a fax – along with the Intermediary Fax Cover sheet – to 0845 600 2367.

 

If you’d like to get in touch by phone and you don’t know the number for your processing team, then you can use our Contact Us facility.