Additional Borrowing is now available through eMortgages.

You now have the option to submit an Additional Borrowing application through eMortgages on behalf of any eligible clients with an existing Skipton mortgage via our new automated online process.

This means we'll be able to 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:

  • Minimum Additional Borrowing loan of £10,000 applies.
  • Your client must have made six months of consecutive mortgage payments before applying for Additional Borrowing. They must not be in arrears or have had more than one missed payment within the last 12 months or have exceeded two missed months in the last two years.
  • Affordability is calculated on the total new loan amount, not just the Additional Borrowing.
  • Your client can't take out Additional Borrowing if they don't pay by Direct Debit.
  • You can use any of the remortgage or retention products.
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 of our remortgage or retention 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.
  5. Once you've submitted an application, you have five working days for your client to sign and return all supporting paperwork.

For further information, including what you'll need to have on hand to apply:

How long does my client need to have had a Skipton mortgage before applying for Additional Borrowing?

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

They must not be in arrears or have had more than one missed payment within the last 12 months or have exceeded two missed months in the last 2 years.

What is the minimum amount to borrow?

Minimum Additional Borrowing loan is £10,000.

For what purposes can Additional Borrowing be requested?

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.

Where can I find the criteria for capital raising?

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

Can you do Additional Borrowing with Consent to Let?

No. Your client can't do Additional Borrowing if there is a Consent to Let on the property.

How and when will the procuration fee be paid?

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.

Can I apply for my client's Additional Borrowing online?

Yes, you now have the option to apply on eMortgages. Your client also has the option to apply direct; however, a procuration fee to the intermediary will not apply.

What does my client need to do if they are querying the valuation?

We will confirm the current index linked valuation of the property, based on the original valuation.

If your client believes the valuation should be higher and there is sufficient reason to believe the property is worth more (e.g. extension) you will need to contact our service centre on 0345 601 6683 or contact us via Web Chat.

Why might my clients need a conveyancer for Additional Borrowing?

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.
Can we use products with free legals for Additional Borrowing?

Yes. However, regardless of whether the product offers free legals as a product incentive, if a solicitor is required for Additional Borrowing your client will be required to arrange and pay for this independently.

What happens if the Additional Borrowing is referred?

The application will be looked at by our underwriters. We will be in touch, but if you'd like discuss your client's case please call our broker support team on 0345 601 6683 or contact us via Web Chat.

What happens if the Additional Borrowing is declined?

If the application is declined because it does not meet our lending policy, your client can call Skipton Direct on 0345 607 9842 for further information. If you'd like to discuss it as a broker, you can contact our broker support team via Web Chat or by calling 0345 601 6683 for further information.

If the application has been declined, eMortgages will let you know if you are still able to carry out a product transfer as a standalone request. For a product transfer, 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.

What happens when my client's Additional Borrowing is accepted?

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.

Do you send a text to let me know that the Additional Borrowing has gone through?

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

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