Can I Get a Second Mortgage To Buy Another House?

It is more than possible to get a second mortgage to buy another house, and we’re running through exactly how you can do this and what you should bear in mind.

You can have two mortgages running simultaneously. The only stipulation is that you are able to afford the monthly repayments for both of them.

Is it difficult to get a second mortgage?

Most people would rightly assume that it can be difficult to secure a second mortgage to buy another property. However, as we’ve mentioned, it’s certainly not impossible.

• Higher depositsMany second home mortgages require a 25% deposit if it is your first buy to let investment property, however if you are looking to retain your current property as an investment and move to a new property as your main residence then many lenders will allow you to do this with a smaller deposit of 10% or even 5%. All of this is subject to strict criteria and affordability.
• Stricter affordability checksThe two mortgages will be treated completely separately, but when you come to research your mortgage options with a broker for your second property, they will take into account your monthly expenditure, which will include your mortgage repayments for your current property.This means that the affordability checks are tighter for second mortgages, so you will need to make sure you have plenty of proof that you can comfortably afford to pay back the monthly repayments.

Regardless of the reason you are buying your second home, whether you’re looking to rent it out to tenants or own it as a holiday home, it will always be treated as a second home mortgage.

How can you boost your chances of securing a second home mortgage?

• Consider trying to repay or pay-off more of your current mortgage before applying for a second.
• Reduce your monthly spending by cutting down on bills, subscriptions and general shopping habits.
• Prepare proof that your income can cover two mortgages.
• Decide how you want to use your second home, as this could affect the type of mortgage you end up with.
• You will also want to check that your credit score is in good health and remedy it if it isn’t. Seek a mortgage
• broker to help you find the best deal on the market.

Can you get more than two mortgages?

For those looking to invest in property, you may wonder whether it’s possible to have more than two mortgages at the same time.

Whilst it is not outside the realm of possibility to have more than two mortgages, you may need to have higher deposits and satisfy the lender of the reasons you wish to own so many properties. These reasons could be that you are a property investor, purchasing a house for your children, another dependent relative or looking to have a holiday home to escape to.

So there you have it – with the right planning and preparation, it is more than possible to get a second mortgage to buy another house.

If you’re in need of a specialist mortgage broker to find a good mortgage deal for a second home, Agentis provide friendly and professional mortgage advice in Peterborough. Contact us today.