Can You Have Two Mortgages at the Same Time?
It is possible to have two mortgages at the same time, but getting approved for a second mortgage while still paying on the first can prove difficult for applicants. A borrower will need to get a second mortgage application approved through the original lender to obtain it successfully.
The borrower will place the second mortgage at a lower priority than the first by the borrower; therefore, many lenders will view this as high-risk and decline the application outright or, if approved, place heavy constraints on the amount borrowed.
The reason a borrower decides to apply for a second mortgage is a significant factor in a lender’s decision to approve or deny. In addition, it may prove more accessible for a guarantor to obtain a second mortgage than a borrower because the extra mortgage will provide additional security for the lender.
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Keep in mind that some borrowers with two mortgages for one property have found themselves unable to repay their loans which results in the property being foreclosed and sold to make up for the debt.
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