Can you have two mortgages

Answered on 27 March 2018

My husband and I are separating, we have our own business and both have equal shares. I want to know if we can take out two separate mortgages in both our names on each property. we both have 50% deposits on both properties.

Having two mortgages on one property

In theory it is possible to arrange two mortgages on one property but in practice you will find that the terms and rates for the second mortgage will not be as favourable as the first. This is because standard residential mortgages are arranged on the basis that they have the first charge registered against the property. This means that if you were to default on your payments, they had to enforce possession and sale then they would have first call on the funds to repay the mortgage plus costs. 

Second charge mortgages run the risk that there will be insufficient funds left to repay their debt in full and this risk is reflected in higher rates and charges.

However, mortgages have to be in the same names as the title deeds. If you are both remaining on the title of each property then the mortgages will be in joint names and there is not much point in arranging two mortgages. If however you are changing the titles so that you own one each then it will not be possible to arrange a mortgage on the property you do not own.

Ask The Mortgage Experts answers are based on the information provided and do not constitute advice under the Financial Services & Markets Act. They reflect the personal views of the authors and do not necessarily represent the views, positions, strategies or opinions of John Charcol. All comments are made in good faith, and John Charcol will not accept liability for them. We recommend you seek professional advice with regard to any of these topics where appropriate.


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