Is It Hard to Get a 2nd Mortgage?
Yes, and depending on the individual, it can prove challenging to get a second mortgage. Most lenders will view a second mortgage application as high risk and decline. Borrowers will typically place the second mortgage as a lower priority than the first, which lenders are wary of. Borrowers will need to get the approval of the original lender to get a second mortgage.
If approved for a second mortgage, some lenders may place tight constraints on the amount you borrow. Borrowers can find more luck applying for second mortgages through private lenders. Before deciding to get a second mortgage, consider the risks, including foreclosure and interest or loan costs. A second mortgage is typically used for debt consolidation or home improvement.
Borrowers may be interested in obtaining a second mortgage to avoid the fees that come with refinancing, but we urge borrowers to keep in mind that a second mortgage also comes with high costs. For example, taking a mortgage out with the same lender as the first can allow a borrower to receive up to 95%, while a new lender can loan a borrower up to 85%.
If you are interested in applying for a second mortgage, our professionals at Mortgage House are prepared to assist you through your application and find competitive interest rates. Need a low doc loan? We assist self-employed clients through loan applications daily!
The Mortgage Repayment Calculator is a helpful tool that Mortgage House created to assist borrowers with planning out the best ways to repay their mortgage and calculate loan payments.