Can I have two mortgages at once?
Though homeowners may not be aware, yes it is possible for you to have two mortgages!
Of course this depends on your eligibility. Providing you have enough income, have a strong credit score and a consistent job status, this may become an option for you.
Why would you take out a second mortgage?
To Purchase a Second Home
There are many reasons why someone might want to purchase a second home. For starters, you may be wanting to rent out the home you already have and purchase a new one. This is called a Let to Buy.
You may be wanting to help out your kids by releasing some equity, purchasing a second property and mortgaging it, so that they have somewhere to live.
It’s a lot more common for parents to release equity as a means of gifting a deposit, though this still crops up from time to time, especially when you factor in property price rises!
Further Advance for Home Improvements
Some may want a second mortgage with their existing lender, on the same home. This is called a further advance and allows you to borrow an additional amount in order to cover various home improvements.
This is a specialist area and would require you to speak with a mortgage advisor in Harrogate.
Second Mortgage for your Buy to Let Portfolio
If you are a landlord, you may require additional mortgages for further portfolio purchases. We find that buy to let mortgages are most commonly on interest only, as this means your monthly payments will be lower, as you’re only paying interest.
You will need to pay back the capital in full at the end of your term though, so that’s something to bear in mind. It’s beneficial to look at speaking with a mortgage advisor in Harrogate ahead of a buy to let mortgage in Harrogate.
We are experts in buy to let mortgage criteria and will work hard to take the weight of your mortgage off your shoulders.
Named on an existing mortgage and want to buy a new home?
Thanks to situations like divorce and separation, this is unfortunately quite a common occurrence for us. We would recommend looking to get your name removed from the mortgage with your ex, as otherwise you will remain liable for the payments, whether you’ve come to a personal agreement or not.
This in turn, will make it difficult to obtain a second mortgage, as they need confidence in your ability to maintain both payments. You also have to think about your ex’s credit history. If they start to miss payments, this can affect your score too.
Speak with a mortgage advisor as soon as possible and get your name removed if you can, as that is definitely your safest bet. If this isn’t an option, then there still be hope for you to get a second mortgage. Book your free mortgage appointment and we’ll be happy to go over this with you.
Date Last Edited: December 27, 2023
