For investment, as a second home, as a vacation home… There are many people looking to buy their second home, but is it possible to take out a mortgage if you have another one in force? The answer is yes. In this context, the experts point out some factors to take into account and explain the options for said contracting.
The use that is going to be given to the property will mark the percentage of the price of the house that will be covered by the mortgage. If it is to acquire a second residence or a home as an investment, the financing percentage does not usually exceed 70%. In addition, interest rates tend to be higher, as experts point out, because the greatest advantages are usually granted for a client’s first home.
On the other hand, if the purchase of a second home is made with the intention of a change of house, .
If the option is to request a mortgage to change cities, the bank will give the same conditions as for a vacation residence, since it is not certain that it is not. In this case, the experts explain that there are ways to manage it so that it is considered a first home, so they recommend going to a mortgage assistant for advice.
unite mortgages
When taking out a second mortgage, there is the option of combining it with the first, so that only one installment will be paid. In addition, “by already having a home, you get better conditions and pay less per month,” they explain from Grocasa.
On the other hand, unifying mortgages offers an advantage in reference to the appraisal. When contracting a mortgage to buy a home, the bank will lend a percentage of the appraisal, always limiting this value to the financing percentage over the previously accepted PVP. “Therefore, if you buy a property for 300,000 euros, and they finance 100% of it, you will need an appraisal of 375,000 euros to get that 100% of the sale price. On the other hand, when unifying, the two properties are appraised , and we will not have this problem, because the mortgage on the first property we bought, having already paid off a large part of the debt, will be well below its appraisal,” the experts point out.
Requesting a mortgage for a second home is a common procedure in financial institutions. However, to apply, you must have a low outstanding debt from the first mortgage, for example, €30,000, or high income, in addition to a credit history with no defaults or arrears.
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