Wednesday 05 December 2018

Can I have more than one mortgage?

Author: Andrew Page

From investing in a buy to let property to buying yourself a country bolthole, there are lots of reasons why you might want to obtain more than one mortgage. Understanding the rules around mortgages in the UK will help you to plan your financial future and ensure you secure the loan that’s perfect for your needs. Keep reading to find out more.

Can I have two mortgages on one property?

Although the vast majority of people have just one mortgage on their main residence, it’s possible to have two loans running on the same property. This generally happens when a buyer has ported their previous mortgage to a new property at the same time as extending their loan with their existing lender. Although this can be interpreted as having two mortgages, both loans have to be with the same lender, and borrowers can’t remortgage with a different bank if one of the loans is still being paid back.

Can I have two residential mortgages?

If you currently have a residential mortgage and want to take out a second, finding a lender who will offer you a loan could be difficult. There are some circumstances in which a bank may consider a loan. For example, if you want to live in one property during the week and the second at the weekends, your lender may offer you a second residential loan. However, if you plan to rent out your second property as a holiday let or rent it to friends and family, a buy to let mortgage may be more suitable.

Buy to let mortgages

When it comes to buy to let mortgages, the rules are a lot easier to understand. In general, as long as you can prove to your lender that you can afford the repayments, you can have as many buy to let mortgages as you like. However, in recent years, banks have tightened up the affordability criteria for buy to let loans, making it more difficult for investors to obtain this type of mortgage. Speak to an expert advisor before applying for a loan to ensure you find the product that’s right for you.

Getting a mortgage on a second home

If you’re looking to buy a holiday home, or a property that you plan to live in for a certain number of months per year, you’ll need to apply for a second home mortgage. As @uSwitchUK says:

“Generally speaking, in order to get a second home mortgage, you will usually need a larger deposit than what you might have been allowed to have for your first mortgage. On top of this, the second home mortgage deals may have higher interest rates than standard mortgage deals.”

If you’re thinking about buying a new property or re-mortgaging your existing home, we can provide you with the advice and the expertise you need to secure a great deal. Explore our site today, or give us a call and speak to one of the expert members of our team.

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Written by: Andrew Page