Additional borrowing

At least 3 months after completion of their primary mortgage.

Your client has a reflection period to consider their additional borrowing offer.

If your client would like the funds on a selected date they should not tick the box on the form of receipt. The funds will be released after or on the date requested.

To receive the funds as soon as possible the client will need to:

• tick the box on the form of receipt to waive their rights to the reflection period
• accept the offer with immediate effect

A solicitor is required when your client is using additional borrowing for:

• buying a share in freehold
• buying land to extend security property
• buying the freehold title or extending a new lease
• paying off a second charge
• staircasing for shared ownership properties

If a solicitor is required, then they will submit the Certificate of Title when they are ready for funds to be released.

The offer email includes standard wording which will always reference a solicitor even if one isn't required.

If a solicitor is not required, then you'll need to upload the signed Form of Receipt to the case requirement when your clients want the funds to be released.

The form of receipt is a document that your client(s) will need to sign to agree to the terms of the additional borrowing mortgage offer, when a solicitor is not required. It will be sent as part of the offer pack to your clients.

The form of receipt will require a wet signature from your clients and you will need to upload the document to the Case Requirement generated once the case goes to offer.

Brokers will receive a procuration fee of 0.4% on completed additional borrowing applications.

No. These are separate application journeys. 

However, we would suggest ensuring your client can borrow the required amount before securing a new rate on their existing mortgage.

No. The customer would need to contact Principality directly to make these changes. 

Create a new case in MSO and select Additional Borrowing as the application type. Complete the Decision in Principle before progressing to the Full Mortgage Application.

When completing the application:

• Enter the reason for borrowing and the amount required.
• Select the additional borrowing product.
• Complete the remaining mortgage application screens as usual.
• The additional borrowing term does not need to match the primary mortgage term.

Before submitting the application:

• Confirm when your client would like the funds to be released.
• If a conveyancer is required, enter their details.
• Complete the final declarations and submit the application.

In addition to the standard application journey, you'll need to provide:

• Letting details.
• Expected rental income.
• A repayment strategy for interest-only borrowing.