Second Mortgage

[minnie76]

is it possible to have two mortgages, and if so are there any restrictions or issues?

[boxtops]

YOu can take out a second mortgage with the same lender - or better still, you can just rearrange your mortgage (which I did a while ago) so you borrow more money but at less cost, because you've already paid off some of the original loan.

[ubasses]

Yes as long as the first Mortage Co will agree to a Second Charge on the property and the second Co are happy to have a Charge on the property which has priority over theirs. And both are happy with the total borrowing in relation to value of the property.
It would be easiest to apply for an equity release with the Company you are already borrowing from.

[factor-fiction]

Do you mean for a second property?

[minnie76]

yes on a second property

[factor-fiction]

The second lender will want to know details of your income and current mortgage and want to be sure of your ability to repay. If it's to be 'buy to let' I believe they will need to know and will have a different mortgage rate

[ubasses]

What is the second property for.

[minnie76]

1st with ex partner, tried selling no joy so rent and im
looking to buy

[ubasses]

If you are looking to rent out the property you own with your ex they will probably want you to change the mortage to a buy to let. That way the mortgage will be assessed on the income from the rent on the property, leaving you to get an ordinary mortgage based on your salary for the new property. You will still have to meet all criteria on both mortgages, so there will have to be enough equity in the old property and you will have to have a deposit for the new one. How much will depend on the Mortgage Companies you go to. Ball park figure they will expect the rental income to be 130% of the monthly interest. This allows for the interest to be covered plus any other costs like management fees to let the property.