30 May 2022
How Much Can I Borrow for a Mortgage?
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Yes, while it is difficult to be approved for a second mortgage while paying off your first, it is possible to have two mortgages simultaneously.Â
A second mortgage is a loan you take out for a property you already have a home loan for. Basically, a second mortgage means one property will be security for two different home loans. In addition, your second mortgage is less of a priority than your first mortgage. Meaning, if you default on your mortgage repayments and your property is sold, the profit will be used to pay off the first mortgage before any money is put towards the second one. Therefore, if you default, you could end up paying a lot of money towards the second home loan.Â
While refinancing an existing mortgage is a better, less risky option, there are some instances where a second mortgage would be more beneficial:
If you have questions about a second mortgage or need to apply for one, Mortgage House can help answer any questions you may have and find you a loan with a competitive rate.Â