Can i get 2 mortgages for the same property ?

seagull1983

Our outstanding mortgage is £157,600 and our house is worth £205,000 but HSBC are only able to offer £138,000 on the rate matcher deal. Can i get a second mortgage for the remaining £20,000 and what are the disadvantages of this ?

Thanks.

_Andy_

It would be a secured loan - disdvantage would be a signifcantly higher interest rate. You may be better off doing the whole lot with a different mortgage company albeit a slightly higher rate than HSBC ratematcher.

mr_mortgage

seagull1983 wrote: »

Our outstanding mortgage is £157,600 and our house is worth £205,000 but HSBC are only able to offer £138,000 on the rate matcher deal. Can i get a second mortgage for the remaining £20,000 and what are the disadvantages of this ?

In short, no.

HSBC will have the first charge on your property and you can't have more than one of them. Given that a mortgage lender will need a first charge, you can't get another one.

BUT, you could take a loan which requires only a second charge on your property (i.e. they are second in line for your assets if you default) but as was previously mentioned, the rate will be higher.

Theoretically, you could get unsecured lending but are very unlikely to get the amount you are looking for.

MrM.