Mortgages

[pops]

Are you allowed to have more than one mortgage running at the same time.

Is there any way this can be done.

Pops

[Hgrove]

If (let's say) your income is �50,000 a year, you could borrow up to (say 2.5 times your income) �125,000.  You should be able to have (say) two mortgages: one for �60,000 and the other for �65,000.  Total �125,000.  Just as long as you declare it to the lenders.  What you cannot do, is have two mortgages of �125,000 each.

[ck1]

If you are looking at a second mortgage to buy the council house to rent out (buy to let mortgage) you can do that no problem, need to show that the rent will cover the mortgage repayments (or come pretty close) - I did this last year, the amount you can get for the second mortgage will only be up to a maximum of 85% of the house value so you will need some kind of a deposit but that not unusual. The housing association can be a good way to go for renting out too, I get a fixed amount each quarter and dont have to worry about any damage caused by the tenants which if you do it privately you will have to contend with a whole manner of problems. Charcol are pretty good for mortgage information

[Oneeyedvic]

Not sure what you want to do.....

If you want more than one property than yes you an have more than one mortgage (or charge) per property. ie every house you own has a different mortgage on it.

You can also have more than one mortgage on one house. In theory you can have any number, but generally three is the maximum.

A mortgage or charge is really just a secured loan. A finance compnay lending you money will secure themselves by loaning against the value of your property.

It all depends on the equity you have available.

As an exmaple. I fyour house is worth 100,000. You may have your main lender who will lend you �80,000. You may also have a business loan secured by way of second charge for another �10,000. Noone else would consider giving you a secure loan by way of third charge.

In this example though, if the property were worth �250,000 with the same above charges, you could approach a 3rd lender who may lend you another �20k.

 

Hope this is not too confusing.