Is it possible to have two mortgages on the same property?

podgy

I want to consolidate some £10K of credit card debt. House is worth approx £450K and outstanding current mortgage (for next 15 years) is £99K. My current provider, Norwich & Peterborough, say that they only allow one debt consolidation during the lifetime of a mortgage (7 years fixed remaining) - we did this when we took out the mortgage four years ago (to be fair, this seems good practice on their part and they are a good provider thus far) so they have refused. I am a bit of a credit card switching tart, but I want to reduce our monthly outgoings. I have a very good credit history.

My question(s) is whether I can apply for a second mortgage of £11K with another provider on the same property? Can Norwich & Peterborough object? If not, are there any other financial products out there which may be of use to me?

Grateful for your thoughts, pls.

HappyMJ

podgy wrote: »

I want to consolidate some £10K of credit card debt. House is worth approx £450K and outstanding current mortgage (for next 15 years) is £99K. My current provider, Norwich & Peterborough, say that they only allow one debt consolidation during the lifetime of a mortgage (7 years fixed remaining) - we did this when we took out the mortgage four years ago (to be fair, this seems good practice on their part and they are a good provider thus far) so they have refused. I am a bit of a credit card switching tart, but I want to reduce our monthly outgoings. I have a very good credit history.

My question(s) is whether I can apply for a second mortgage of £11K with another provider on the same property? Can Norwich & Peterborough object? If not, are there any other financial products out there which may be of use to me?

Grateful for your thoughts, pls.

Why.....oh why...a second time.

Anyway never mind.

You can remortgage the whole property to another provider paying any ERC's on the mortgage you have. You do not have to stay for the next 7 years.

anselld

If you are a switching tart as you say (you sound like a spending tart!) then apply for some low fee balance transfer cards and start getting the 10k paid off.

If you spread the repayments over the remaining mortgage you will pay more interest in the long term and probably run up another debt.

csgohan4

10k of debt is not good credit history

kingstreet

A secured loan/second charge from a finance house would be the only secured option.

As it's a second charge, the rate will be higher than that of a "normal" first charge mortgage.

podgy

HappyMJ wrote: »

Why.....oh why...a second time.

Anyway never mind.

You can remortgage the whole property to another provider paying any ERC's on the mortgage you have. You do not have to stay for the next 7 years.

I meant have two mortgages on the same property at the same time?

amnblog

Yes you can podgy.


Only one mortgage can have first call on the funds if the property is sold (first charge), the other one is call a 'second charge'.


We generally talk about the first charge as a 'mortgage' and the second charge as a 'secured loan'.


Speak to a broker to discuss your options.