Can you have more than one mortgage?
The idea of having one mortgage can stress people out, never mind two! That said, some people weren’t aware that it was possible to have two or more mortgages.
Many various costs come with a second mortgage, and there are many different reasons why someone might want more than one mortgage.
Common Scenarios for Wanting a Second Mortgage
- Do you want a second mortgage to raise money for your existing home?
- Are you looking to rent out your current home and purchase a new one?
- Are you looking to help your children out with a second mortgage?
- Do you require a buy to let mortgage to secure a property in Derby?
- Is your name on an existing mortgage, and you are looking to buy a new property?
Second Mortgage to Raise Money
If you have a large amount of equity built up in your home and are looking to release some to fund for a second mortgage to purchase a new home, home improvements or on another property for your portfolio.
Then this is something an experienced mortgage advice team in Derby, like ourselves, can look into for you.
You’ll often find towards the back end of your mortgage that you will be heading onto or potentially already are on a lender’s Standard Variable Rate (SVR).
Our team of advisors may be able to shop around to find you a more competitive deal. Another potential option could be an advance with your current lender.
Second Mortgage to Rent out Existing Home to Purchase a new one
If you are looking into the possibility of moving house but securing full ownership of your current property to let it out, this is another case where having a second mortgage would be suitable.
Your second mortgage will be a new residential one, taken out on a property after raising funds from renting out the previous home. This particular process is known as a let to buy mortgage.
Second Mortgage for a Buy to Let
Some homeowners may look to release the equity sitting in their property, using that income to buy an additional property to add to their portfolio.
Second Mortgage to Purchase a Home for Your Children
We are now seeing more situations where a homeowner may wish to take out a remortgage to release equity to gift their child a substantial deposit.
Gifted deposits are a widely popular option for many first time buyers in Derby who otherwise wouldn’t have gotten on the property ladder any other way.
Named on Existing Mortgage and Want to buy a new Home
A second mortgage may apply to other circumstances, such as financial complications present with a divorce or separation.
You may not always be able to get out of your joint mortgage straight away, if at all, but may wish to take out a mortgage on a home of your own once you’ve moved out.
If you have any questions regarding second mortgages, please do not hesitate to get in touch.
You can now book yourself in for a free mortgage appointment to speak with a dedicated mortgage advisor in Derby at a time that suits you and your lifestyle.
Date Last Edited: December 6, 2023
