Homeowners who want to raise extra money against their property often face a choice: ask their current lender for a further advance, or remortgage to a new deal with a larger loan. With Bank Rate at 3.75% following the Bank of England’s September 2026 hold, and the next decision due on 5 November, the right answer depends on your existing rate, any early repayment charges and what you need the money for.
What is a further advance?
A further advance is additional borrowing from your existing mortgage lender, secured on the same property. It is usually taken as a separate sub-account with its own rate and term, while your original mortgage stays as it is. Lenders typically ask what the money is for, such as home improvements, and reassess affordability and the property’s value.
What is a remortgage with capital raising?
With a remortgage, you replace your existing mortgage with a new one, either with your current lender (a product transfer) or a different lender, and borrow more than you owe. Everything moves onto one rate and term. Read our UK remortgage guide for 2026 for the full process.
Comparing the two options
- Interest rate: a further advance is priced at the lender’s current rate for that loan, while your existing balance stays on its current rate. A remortgage reprices the entire balance. If your existing rate is low, keeping it may be valuable; if it is high, a remortgage may reduce your overall cost.
- Early repayment charges: remortgaging during a fixed or discounted period can trigger charges on the whole balance, whereas a further advance generally does not affect your existing deal. Check your mortgage offer for the exact terms.
- Fees: a further advance may involve a lower fee and less legal work, but not always. Remortgages can come with free valuations and legals on some products.
- Choice: a further advance is limited to your current lender’s range, while a remortgage opens the wider market.
- Term and structure: a further advance can have a different term to your original loan, which affects monthly payments and total interest.
When a further advance can make sense
It often suits a smaller sum, a borrower with a competitive existing fixed rate and a significant early repayment charge, or a straightforward purpose such as an extension. Lenders can process it faster when no change of lender is involved.
When a remortgage may be better
A remortgage may be preferable where your current deal is ending anyway, where you want to consolidate everything on one rate, or where your lender’s further advance pricing or criteria are restrictive. If your fixed rate is nearing its end, see product transfer vs remortgage when your fixed rate ends.
Second charge as a third option
If you want to leave your first mortgage untouched and your lender will not offer a further advance, a second charge loan from a different lender can be considered. It is secured behind your existing mortgage, so it carries its own costs and risks. We compare the options in second charge mortgages vs remortgaging.
Working out the true cost
Do not compare headline rates alone. Total up the blended rate across the old and new borrowing, add fees and any early repayment charge, and consider the effect of extending the term. Borrowing for a long period can reduce the monthly payment but increase total interest paid over the life of the loan. A mortgage adviser can model the options side by side.
Affordability and credit checks
Whichever route you take, the lender will test affordability and may use stress rates above the pay rate. Your credit file, income and commitments all matter. If your circumstances include missed payments, our guide to remortgaging with a CCJ explains what may be possible.
Next steps
Tell us your current rate, balance, end date of any fixed period and what you want to borrow, and we will outline the options. See our residential and remortgage service, areas we cover or contact us. You may also like our landlord and portfolio hub if the property is let.
YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE. Think carefully before securing other debts against your home. Borrowing more over a longer term may increase the total amount you repay.
Giles Finance is a trading style of Giles Finance & Consultancy Services, authorised and regulated by the Financial Conduct Authority (FRN 726857).