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Can I get a second mortgage

Written By:
Myles Robinson - Expert Finance Advisor

Posted: Feb 15, 2023

Can I get a second mortgage?

There are many good options for getting a second mortgage, whether you need a second mortgage to purchase another owner-occupied home, finance major investments, or invest in real estate.

Before applying for second mortgages, you need to be familiar with the factors determining whether or not you are eligible.

If you have an existing mortgage and require a second mortgage contact us today. We will introduce you to a mortgage lender to suit your personal circumstances.

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If I have an existing mortgage, can I apply for another to buy a house?

You can get a second residential mortgage even if you have one. Many mortgage lenders can provide great rates on any second mortgage that you want.

Your additional/second mortgage is secured against your home, just like your first mortgage. Therefore, the property is security for the mortgage lender to ensure you pay the secured loan back.

The second loan does not replace or merge with your original mortgage. You’ll be responsible for two mortgage repayments because it’s a separate mortgage.

Lenders might charge you higher fees this time than before and will conduct a detailed affordability check.

Lenders may require you to have mortgage insurance or to pay higher rates to offset the increased risk of adding debt. It is important to consider all additional costs before you apply for a second mortgage.


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Costs involved in a second mortgage

These are some additional costs that you might incur when buying a second mortgage.

  • If you are renting one of your properties, the landlord’s insurance
  • Insurance for mortgages
  • Property taxes
  • Association fee for homeowners
  • Repairs to property cost
  • The monthly mortgage payments cost

Already have a mortgage. Talk to an advisor to learn more about getting second mortgages. You can get impartial, free advice that won’t impact your credit rating.

Can I get a mortgage for a second home even though I have an existing one with my ex?

You may be able to get another mortgage if you are divorced or separated and still have a mortgage with your ex-partner. You can get a second mortgage as long as you meet all the eligibility and affordability requirements of the lender.

Lenders will often check to see how much maintenance your household is paying if any, and how much mortgage you own on the ex-marital property. Lenders may subtract the monthly payments on your initial mortgage from your income or deduct your share of the initial mortgage amount from the total they would lend you.

You might also be interested in ways to raise capital with your ex-partner to get out of a mortgage.

You can apply as a single applicant or jointly with another person for a mortgage. Make sure you have sufficient funds to be able to get the amount that you want.

Contact us today to discuss a personal loan, two mortgages, or early repayment charges.


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How do you get another mortgage if you already have one?

The application process for a second or additional mortgage is the same as the one you used to apply for your first mortgage. Lenders will assess your credit rating and income ratio before they approve the second loan.

Even if your second home mortgage deposit is high, you must show that you can afford the mortgage payments over the long term if you apply for a second mortgage.

These are some things that the lender will consider when deciding whether or not you are eligible for a second mortgage.

  • Your income You will need bank statements and payslips
  • Your outgoings Lenders might look at your spending habits and expenses more closely than when your first mortgage was approved.
  • How well can you handle a financial “stress test”: This could include losing a job, having children, or unexpected increases in your living expenses.
  • Credit report: The credit score of your application will be reviewed by mortgage lenders. Getting a mortgage with poor credit may reduce the number of lenders available for your second mortgage.

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Do you think it is easier to get a mortgage when you already own one?

Although obtaining a second or additional mortgage is easy, there will likely be more rigorous affordability checks than when you obtained your first mortgage. As the second loan is secured against your equity, you will need sufficient equity (the value of the property you already own).

However, additional fees may apply if you have to modify the status of your mortgage on an existing property.

If you plan to rent the second house and change your first house to an owner-occupied property, you might have to pay the penalty to modify your mortgage type. Lenders may require you to wait until you refinance the property if you cannot afford the mortgage.

What is the maximum amount I can borrow if my mortgage is already paid?

While most mortgage lenders will allow you to borrow up to 4.5x your salary, the size of your second mortgage is determined by your credit history and the amount of equity you have. Only the equity you have is allowed to be borrowed, not the entire value of the home you own.

Your finances must be attractive to lenders to increase the second mortgage’s size.

This will help you to make it easier to get a second mortgage.

  • You must have repaid the majority of your first mortgage.
  • You can make valuable improvements to your first home, such as a new kitchen or plumbing.

There’s a good chance that your equity has increased if property prices have risen in your area since your first mortgage.

Keep in mind, however, that mortgage lenders are willing to consider offers based on 5x or 6x salary, depending on the circumstances.


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If I have a mortgage, can I still get a buy-to-let mortgage?

If you have a mortgage, you are eligible to get a mortgage for an HTML-to-let. Many lenders won’t offer you a mortgage for a buy-to-let if you are already a homeowner.

To qualify for a buy-to-let mortgage, ensure you meet all lenders’ requirements.

  • Lenders often have upper age limits that limit the age of borrowers when the mortgage term ends. Before you apply, check these out and make sure you are in the right age bracket.
  • A good credit history and income are required to prove that you can afford another property.
  • Whether you are the property owner or a mortgagee, you must be a homeowner.

Learn how buy-to-let mortgages work in our comprehensive guide.

You can get a construction loan even if you have a mortgage

You must ensure that you have the financial ability to repay both your mortgage and the construction loan you are applying for. Your lender will decide if you can afford a construction loan and monthly payments.

You should check your credit score and income ratio to determine if you are eligible for a construction loan. A mortgage broker can help you determine if you are eligible for a loan for construction and guide you to the best deal.


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If you have a mortgage buy-to-let, it is possible to get a residential mortgage

If you have a mortgage on your home, you can apply for a residential loan. A residential mortgage deposit is usually lower than a buy to let mortgage.

Before applying for another mortgage, you must verify that your financial situation is acceptable to lenders.

What is the maximum amount I can borrow if I have a mortgage to buy?

You can borrow a different amount depending on what type of mortgage you need and which lender you choose, as each lender has its own affordability criteria.

Each lender will assess your income, outgoings, and buy-to-let mortgage before deciding how much they are willing to lend to you.

If I have a mortgage, can I get a joint mortgage?

If you have a mortgage, you can get a joint loan.

A joint mortgage would allow you to borrow more money than you would be able to if the first mortgage were applied for on your own.

Lenders will consider the combined income of all applicants to determine the amount of mortgage they can approve.

Your joint mortgage application will be subject to the same affordability and rules. Lenders will review your income, spending and equity in your existing mortgage.


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Can I still get a loan for Help to Buy if I have a mortgage?

The Help To Buy scheme by the UK government is available to both first buyers as well as homeowners looking to sell or purchase a property and move.

If you have a mortgage or are planning to get a second, the Help to Buy program is not for you. You can’t own any property if you buy your new home through Help to Buy.

Talk to an expert second mortgage advisor now

A second mortgage is a great way to invest in your financial future. An expert advisor can help you ensure financial stability before applying for a second loan. They will also be able to use their market access to find the best mortgage deals.

Our broker-matching service is free and can match you with a specialist in second mortgages. We’ll consider your circumstances and match you up with the best expert to help you.

We’ll arrange a no-obligation, free chat with your best mortgage broker by contacting us today to constitute financial advice.

Here are some key mortgage broker facts:

A mortgage broker has access to more deals than any other comparison site. Discover more options and increase your chances of getting approved for a mortgage. A broker can help you access 30% more mortgage markets? Get started with an Expert today to discover how much you could save and unlock even more deals.


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