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Can I have 2 mortgages on one property
mnd1974
Posts: 1 Newbie
I'm happy with my existing mortgage rate but I want to borrow more and my existing lender has uncompetitive rates for the additional borrowing.
Can I keep my current mortgage and get the additional borrowing from a different lender?
Can I keep my current mortgage and get the additional borrowing from a different lender?
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Comments
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You could take a second charge secured loan but likely to be higher than current lender will offer.
Have you looked at a remortgage for the full amount of current and required borrowing?I am a Mortgage AdviserYou should note that this site doesn't check my status as a mortgage adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.0 -
Short answer is yes, but as GMS says all high street lenders want a first charge on the property unless its a secured loan.
Secured loan rates range from anywhere at around 8% plus.
Your 2 cheapest options are to transfer the mortgage and have any additional borrowing with a new lender or ask use your existing lender for the extra borrowing - effectively keeping everything with one lender or another.I am a Mortgage AdviserYou should note that this site doesn't check my status as a mortgage adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.0 -
I have a mortgage plus 2 advances on the same property but it is with the same lender.
HTHMorgage till Nov 30 GOAL MFW Sept 2016Aug 11 - £100k Aug 2016.... It's GONE!!!!!
2014 GOAL HIT 5 Stone! 2016 GOAL to be a MF marathon runner.
"A goal without a plan is just a wish"0 -
Still only one first charge though, so technically, one mortgage split into three sub-accounts.HelenDaveKids wrote: »I have a mortgage plus 2 advances on the same property but it is with the same lender.
HTH
That's the point. The OP is trying to get two first charges so he gets the best rates, but that isn't possible.I am a mortgage broker. You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice. Please do not send PMs asking for one-to-one-advice, or representation.0 -
kingstreet wrote: »Still only one first charge though, so technically, one mortgage split into three sub-accounts.
That's the point. The OP is trying to get two first charges so he gets the best rates, but that isn't possible.
Quite right.
The point is that there is a pecking order if the loan has to be repaid out of the proceeds of a forced sale. This is the order in which the loans were made. A second charge holder will only get paid after the first chargeholder - and has no information about arrears on that account.
There is a further complication in that if you have a second charge on your property and then seek a further loan from the first chargeholder it will rank behind the second charge. This means the first chargeholder will not normally lend any more unless the second chargeholder agrees to rank it ahead. That is unlikely to happen.0
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