Further Advance vs Remortgage: What’s the Difference?

If you need extra funds and your mortgage isn’t up for renewal, you may have more options than you think.

Maybe it’s a kitchen that finally needs doing, a bit of breathing room to consolidate some debts, or helping a family member with a deposit. Whatever the reason, when homeowners realise they need to borrow more money, the first thought is often the same: “I suppose I’ll have to remortgage.”

It’s an understandable assumption. But remortgaging isn’t the only way to borrow more against your home — and depending on your circumstances, it might not even be the best one.

What is a further advance?

A further advance is additional borrowing from your existing mortgage lender, on top of what you already owe. It’s a separate loan, sat alongside your current mortgage deal, rather than a replacement for it. Many homeowners know this as simply “borrowing more on my mortgage” — which, in essence, is exactly what it is.

Because it’s arranged with your existing lender, your current mortgage deal is left untouched. If you’re part-way through a fixed or discounted rate, a further advance means you don’t have to give that up to access extra funds.

How is that different from a remortgage?

A remortgage, by contrast, means replacing your entire mortgage — potentially with a new lender, on a new rate, over a new term. It’s a common way to borrow more, particularly if your current deal is coming to an end anyway, but it does mean your whole mortgage balance is repriced, not just the new borrowing.

A quick note on another option

There’s also a third route worth knowing exists: a second charge mortgage. Like a further advance, it allows you to borrow against your home without disturbing your existing mortgage deal — though it works a little differently, as it’s a separate loan secured against your property rather than additional borrowing from your existing lender. We’ve covered this in detail in Second Charge Mortgages Explained: What They Are, What They’re Used For, and the Myths Worth Busting, if you’d like to understand it further.

Why the difference matters

The main appeal of a further advance is that it lets you keep the rate and terms on your existing mortgage balance, while only the new borrowing is priced at current rates. If you’re currently on a favourable deal, that can make a real difference compared with remortgaging your whole balance at today’s rates.

When a further advance tends to make sense

• You’re still within a fixed or discounted deal, with time left to run
• Your existing lender offers a competitive further advance rate
• The extra borrowing you need is relatively modest

When a remortgage might be the better route

• Your current deal is coming to an end anyway
• Your lender’s further advance rate isn’t competitive
• You want to restructure your mortgage more broadly, not just add to it

Which is right for you?

There’s no single right answer — it depends on your current deal, your lender’s criteria, and how much you need to borrow. If you’re weighing up your options, our team is happy to talk it through with you.