Second Mortgage Advice in Coventry
Managing one mortgage can come with its challenges so imagine having to juggle two.
Regardless of this, there are a large variety of reasons why an individual may look at managing another mortgage. Through our experience as a Mortgage Broker in Coventry, we find that the most common reason why someone may look at this option is that they are a landlord looking to take out another Buy to Let Mortgage in Coventry.
If you are in this situation or something similar, we have a team of Mortgage Advisors in Coventry who will work hard to achieve your goal of obtaining a second mortgage.
The process works by the lender getting an insight into your current mortgage affordability, income and expenditure so they can get a more financial picture of who you are before they potentially accept your offer for a second mortgage. Just like with your initial mortgage, they need to know that you can afford another mortgage.
Furthermore, you may need to put down a larger deposit on this mortgage, somewhere between 15-40%.
Why would you take out a second mortgage?
As mentioned there are plenty of reasons why people will look at taking out a second mortgage with some being more common than others. Below are a few of the more popular reasons we have come across through the years providing fast & friendly mortgage advice in Coventry.
Second Mortgage For a Buy to Let
A Buy to Let is a property that you rent out and do not live in. This is an option suitable for current or aspiring landlords.
When it comes to Buy to Lets, it’s very likely that you will need to put down a higher deposit amount. With any Buy to Let, you are required to put down an amount that is between 25-40% loan to value rate.
Buy to Let mortgage repayments and your current mortgage work the exact same. It will involve monthly bills and interest rates will apply.
In the case where you are taking out a second mortgage for a buy to let property, seeking a knowledgeable Buy to Let expert can be very helpful. Here at Coventrymoneyman, we have built close relationships with many landlords in the area for many years and have provided a helping hand with them when it comes to remortgages on their property.
Second Mortgage For a Let to Buy
Let to Buy goes through the same process as a Buy to Let. When it comes to moving home in Coventry to a property that you’re purchasing and renting out your current one. The deposits and payments will stay the same as a Buy to Let because you’re still taking out two mortgages.
As well as Buy to Let, our expert mortgage advisors in Coventry have many years in working with Let to Buys. Book your free mortgage appointment with one of our advisors to see whether you are eligible or not.
Second Mortgage to Purchase a Home For Your Children
This situation is increasingly more popular, especially in recent years. We have found many parents being aware of the challenge of getting onto the property ladder and the costs of a mortgage.
Because of the ever-growing rise of inflation and property prices, first time buyers in Coventry are needing help and support to move home. In some cases, many people require a bit more than a gifted deposit.
We generally find that applicants get the help they need from grandparents and parents. This is due to the fact that it’s likely they have already paid off their mortgage and are able to afford it to help. If you do get help from a family member, they will also need to pass the lender’s affordability checks so they can afford to keep up payments for their child’s and grandchild’s mortgage.
Second Mortgage to Raise Funds
If you are looking to take equity out of your home to raise funds, people normally use the money for home improvements, debt consolidation, pursuing a big purchase like a car or funding a wedding. Furthermore, some people look to release equity and take out another mortgage.
This circumstance is also known as a further advance. This is when you borrow more from your current lender to fund something like home improvements or a second mortgage.
You may be wondering how much can borrow, however, this all comes down to the amount of equity in your property and you will still need to show that you can afford the additional mortgage amount as well as your existing one.
Named on an existing mortgage and want to buy a new home?
We do find that removing a name from a mortgage can be a challenge to many which result in many people leaving their name on the mortgage. Your name may still be on the mortgage, there is a possibility that you can take an additional mortgage in your own name.
It’s likely you choose this option if you are going through a recent divorce or separation. Sadly, financial commitments should be at the forefront of your mind if you are in a situation like this.
If you are looking to take out a second mortgage in your sole name, you may find some difficult to get accepted. Your lender will be aware that you are a sole applicant and are still linked to another mortgage. Regardless of whether you’ve made agreements with your ex-partner that you will still contribute to their mortgage payments, they will view this as a potential liability.
This is where it can be very complex and stressful, however, speaking to a specialist mortgage advisor in Coventry could help with this. We have experienced advisors who can provide the appropriate divorce and separation mortgage advice in Coventry. If you are looking for further information regarding this, book your free mortgage appointment to speak to an advisor today.
Date Last Edited: December 6, 2023
