2 mortgages on one property

PaddyDoherty

I currently have a mortgage on my property at a great rate and have permission to extend my property. To carry out the extension I need to raise capital that I have as equity but would like to keep my existing mortgage and organise a separate mortgage for the extension, is this possible?

best regards,
Paddy

Thrugelmir

The mortgage is actually the legal charge placed on the property to secure the debt. What we commonly refer to as a mortgage is really a loan. Similar to any other.

You can either approach your existing lender for an additional product.

Or remortgage entirely with a new lender to obtain the funds you require.

Mainstream lenders will all require first charge on the property.

Secured loan lenders will take a second charge. Correspondingly their rates are far higher and best avoided.

holly_hobby

Simple .... apply for a further advance with your current lender - whom already hold 1st charge.

OR

If you don't like their rates etc, apply for a new mortgage for the total borrowings reqd with an alternate lender - referred to as a remortgage.

Of course the both are subject to meeting criteria, status and affordabilty requirements of the lender.

NB - Any bld works have to be approved by the mge lender before commencement.

Hope this helps

Holly

shamps

Conversely, I have been in discussion with my mortgage provider today - The One Account as I am wanting to let my flat and purchase a house - they told me that they will do one One Account Mortgage which takes into consideration both properties.

For example, the apt is worth £180K and the new house £250K therefore a total of £430K - The One Account have told me that they will lend me up to 75% of the total worth and I am free to use the money towards the new place and then to let out the Apt without any conditions being attached.

2 properties - one mortgage (offset as well!)

Anyone else heard of this.

Thrugelmir

shamps wrote: »

Anyone else heard of this.

How are they evaluating your borrowing facility? On your earned income?

holly_hobby

The one account is a flexible offset arrangement.

In your case, as ther are 2 different properties, there will be 2 separate 1st charges, essentially creating 2 separate debts (albeit apparently administered under the one offset umbrella account).

The issue with the OP is that they have 1 property, but wanted to effect a further advance with an alternate mortgaage provider, which would result in the requirement of 2 1st charges on the same single dwelling - which of course isn't a possability.

Hope this helps

Holly