The majority of people will perhaps not even consider taking out a second mortgage. As it is, one mortgage can stress people, nevermind having a second one! Furthermore, it can also be even more costly to do so as well.
That being said, surprisingly, they are still pretty common with homeowners. Here are a selection of reasons as to why someone may wish to invest in an additional mortgage.
Common Reasons For Wanting Two Mortgages
- Raising money to use on your existing home.
- Renting out your current home and purchasing a new one.
- Helping children get onto the property ladder by taking out a second mortgage.
- Purchasing additional buy to lets in Grimsby.
- Being named on an existing mortgage and wanting to take out a new one.
Capital Raise Funds for Your Home
Quite often, people who have built up a portion of equity within their home may find that they would like to make some additional changes to their home. This isn’t a second mortgage in a sense of having two run alongside each other, but more of your second go around.
In order to release equity, you will need to remortgage from your current deal, onto a new one. We most frequently see people using the equity within their home to cover the costs of things like home improvements, modifications or alterations.
Additionally, whilst releasing equity can be an option, you may also be able to use your equity in other ways. Some may release it to fund the deposit of an additional purchase, whilst others may use the equity in their home to open themselves up to better deals.
Rent Out Your Existing Home to Purchase a New One
The process of renting out your existing property in order to raise the funds to purchase a new home, is called a let to buy mortgage in Grimsby. This requires remortgaging your existing home onto a special let to buy mortgage, whilst you take out a new residential one.
Help Your Children to Get Onto The Property Ladder
We are starting to see more and more first time buyers taking out first time buyer mortgages in Grimsby and getting onto the property ladder, though there are still plenty out there who are finding it difficult. It’s not an easy transition to go from renting to buying!
One of the bigger factors we have seen in younger people doing this, is by having the help of a family member. Gifted deposits is the act of gifting money, either from savings or from the aforementioned remortgage to release equity, to a family member, to help them achieve their home buying goals.
In addition to this, there may also be the option of simply purchasing a new home for your family member to live in. For this to work, the mortgage would be taken out in your name, making it a literal second mortgage, though you would not be living there.
A mortgage lender may prefer you to live in a residential property you are going to be paying for, though there are mortgage lenders who will allow this. In order to have two mortgages running side by side, you will need to meet a mortgage lenders strict lending criteria and affordability requirements.
Additional Buy to Let Purchase in Grimsby
If you are already a landlord with a buy to let mortgage in Grimsby, you may be looking at expanding your investments into even more properties. The good news is that this is very common, with many landlords owning more than one property.
We have helped thousands of buy to let landlords over the years, securing them amazing buy to let mortgage deals and forming relationships, that see many of them returning for remortgages and additional purchases.
Book online and we’ll get the ball rolling on any further buy to let mortgages in Grimsby you are looking at taking out.
Named on an existing mortgage and want to buy a new home?
If you are currently named on another mortgage but do not want to be financially tied to another person anymore, you may be considering your options. This scenario is common with divorce and separation. In this case, you need to remove the financial ties as soon as possible.
You can achieve this by either yourself (if you’re planning to stay in the property) or your ex-partner (if they are staying within the property) remortgaging into your sole name. This has to be done with the consent of the other party.
If the mortgage lender determines that one party cannot afford the current mortgage in their sole name, you may not be able to get your name removed from their mortgage. As such, you will still be legally responsible for it, even if you agree that only one of you will maintain payments.
From here, you may want to purchase a home of your own, in your name. Though it can be tricky with affordability, there are specialist mortgage lenders who are willing to help customers who are looking to have a second mortgage in their name due to this circumstance.
Book your free mortgage appointment today and benefit from expert specialist mortgage advice for specialist mortgages in Grimsby, today.
Date Last Edited: January 3, 2024
