Can I get a mortgage if I already have one ?
Our Mortgage Service
Special features of what we offer:
- Whole of market service - we work with leading UK lenders to look to see if you can get a better deal on your existing mortgage or if you are looking at a second mortgage or buy to let
- Access to leading market mortgage rates
- Access to exclusive loan deals not available on high street
- Fast turnaround - speak to us today if you need to move quickly
- We have lenders who will take into account previous defaults and missed payments
- Looking to raise additional finance on top of your existing mortgage or buy to let mortgage? - we have access to a range of finance solutions
To investigate your mortgage options even if you have on already call our mortgage team on 0117 403 4474 or fill in our call back form.
"The essence of the Fair Mortgages service is professional independent mortgage and protection advice brought to you by a team of specialist advisers and experienced administration support.
As your mortgage is such an important transaction, good advice is imperative.
Can I get a mortgage if I already have one
If you’re currently paying off a mortgage you may be wondering if it is possible to get another. There are a range of ways someone can have multiple mortgages, it however depends on whether you are looking to take out a second mortgage on the same property as your existing home finance or if you are looking to get a new mortgage to purchase an additional property such as a holiday home or maybe an investment property such as a buy to let.
For your main residence
If your current mortgage is on your main residence and this is the property that you would like an additional mortgage for then you essentially have two choices: Remortgaging or taking out a second charge mortgage, also known as a ‘second mortgage’ or homeowner loan.
- Remortgage: remortgaging is commonly done for two reasons either; to reduce your monthly repayment costs by securing a better rate/returning to an introductory offer or to borrow more money. This can be done because as you make your monthly remortgage payments you also acquire a slightly larger share of the property known as ‘equity’ reducing the loan to value (LTV) of your mortgage. If you remortgage you have the option of increasing your LTV again, decreasing the amount of equity you have, to borrow a larger sum. You can use the capital raised through remortgaging for any reason.
- Second Charge Mortgages: A second charge mortgage allows you to take out a second loan secured against the same property. Any equity you own in your property can be used to secure a second charge mortgage similar to when you remortgage. One benefit of taking out a second charge mortgage is that it may be able to save you money if your current mortgage arrangement has a large early repayment fee. This kind of mortgage works on a ‘Second charge’ while your main mortgage holds the ‘First charge’ this essentially means that if you failed to keep up with your repayments and your home was repossessed the debt to the first charge lender would be cleared through the sale of the property before any money would go toward the second charge lender.
Second Home/Holiday Home Mortgages
There are a limited number of lenders that operate within this market, as this is not a main residential mortgage interest rates tend to be higher. Lenders may place specific stipulations on holiday homes, to find out more about second home mortgages click here.
Buy to let mortgages
It is possible to have multiple buy to let mortgages, this is because while lenders will consider your income, credit rating and existing financial commitment, lending for a buy to let property is primarily dictated by the potential rental yield of the property, as a general rule monthly rent has to cover at least 125% of the mortgage monthly repayments, to find out more about getting a buy to let property click here <link to buy to let page.
When looking for any kind of additional mortgage you may benefit from speaking to an independent mortgage adviser, who can offer you impartial advice and use their expert knowledge of the market to find out the best products available to fit your needs. To find out if Fair Mortgages could help you, fill in our online contact form to request a call back for a free initial consultation from one of our advisers.
Our dedicated whole of market mortgage team can help you to locate the right mortgage deal for you – call us today on 0117 403 4474