Can you have two mortgages?

Can you have two mortgages at once?

Yes, it is possible to be on two different mortgages at once. Homeowners often find themselves in this situation for various reasons - such as:

• Selling your former home and buying another
• Co-owning a property with someone else while holding a mortgage for your own home or
• Living in a residential home and renting out a second residence elsewhere
• Helping a loved one buy with a product like an Income Boost

However, whether you'll be able to have two mortgages depends on your affordability and unique situation, which is assessed by the lender when you apply for the second mortgage.

Please be aware, at Tembo we do not offer advice on second charge mortgages.

Can you have two mortgages on one property?

It is possible to have two mortgages on one property; which can take the form of a home equity loan or line of credit, which allows you to borrow against the equity you've built up in your home. However, second mortgages come with their own set of risks and terms, so it's important to discuss your mortgage options with a mortgage advisor first.

If you looking to get two mortgages because you cannot borrow enough with one to purchase the home you want, work with a mortgage broker that specialises in affordability like Tembo.

Before taking out a second mortgage, it's essential to consult with a financial advisor too/

Can I get another mortgage if I already have one?

Yes, you could still qualify for a mortgage even if your name is already on another one. Lenders will consider your overall financial health, including income, debts, and credit history, to assess your capacity to manage additional mortgage payments. Providing you can demonstrate financial stability and the ability to handle multiple mortgages, approval for another mortgage is possible.

Does a guarantor mortgage count as a second mortgage?

Yes, if you helped your loved one buy with a product like an Income Boost (or Joint Borrower Sole Proprietor mortgage), you would technically be taking out a second mortgage. An Income Boost allows a potential buyer to increase their borrowing potential for a home, by combining their income with a 'booster' (otherwise known as a supporting borrower or guarantor). Although the buyer is officially the sole owner of the property, the booster is there to step in if the buyer is unable to make their repayments.

In the case of an Income Boost mortgage, a 'supporting borrower' is applying alongside the buyer for the mortgage - with both getting jointly assessed on income, expenditure and credit history. Therefore, the mortgage would be registered on their credit file as a second mortgage.

Can I get a buy-to-let mortgage if I already have a mortgage?

Yes, it is possible to get a buy-to-let mortgage even if you already have a residential mortgage. Buy-to-let mortgages are specifically designed for properties that you intend to rent out rather than live in. Lenders will typically evaluate your financial stability, rental income potential, and other factors to determine whether you are eligible for a buy-to-let mortgage. If your affordability doesn't pass their assessments, your mortgage application will be rejected.

You might also like: Our guide to buying a second home

How can I get a second mortgage?

The process for taking out a second mortgage is very similar to taking out your first mortgage. When taking out your second mortgage, its a good idea to make sure you do your research to make sure you're getting the best deal possible - and choosing a product that works for you and your financial situation. From there, you need to:

1. Get a Mortgage in Principle (which takes just minutes with Tembo)
2. Put your mortgage application together (including bank statements, proof of income, proof of deposit, a valid form of ID, and proof of address).
3. Wait for the approval of your application

You'll also need to make sure that your financials and credit history are still in good nick since the last time you applied for a mortgage!

With Tembo, we're here to make this process as easy as possible. Simply complete our mortgage 'fact find' and we'll generate you a personalised mortgage recommendation in less than 10-minutes. Our award-winning team of mortgage experts will do the rest.