What is the maximum number of mortgages one person can have?

Here we will tell you how many mortgages a person can have at the same time. Continue reading the article to find out.

What is a mortgage?

Before explaining how many mortgages we can have, it is essential to make it clear what is a mortgage When we talk about a mortgage loan, we mean receive a certain amount of money, capital, from a bank in exchange for the commitment to return said amount, in addition to the corresponding interest. The latter will vary depending on the interest rate of the mortgage. The The return of the money must be carried out through the periodic payment of installments that, generally, are monthly. On the other hand, the property itself is offered as a guarantee of payment that will be acquired.

How many mortgages can we have?

Financial and banking institutions provide Mortgage loans to buy real estate. For this reason, it is contemplated in the mortgage contract how the payment conditions will be established. However, it is very common for the following question to arise: How many mortgages can the same person have? Here we will give you the answer.

In Spanish law There is no rule that makes it clear to us how many mortgages the same person can have. It is assumed that any person has the possibility of having as many mortgages as your borrowing capacity allows.

In other words, the Bank of Spain establishes that an amount greater than 30% or 40% of the monthly income should not be allocated to pay the installments of a mortgage loan. However, in the event that you have not yet covered that percentage, you will have the possibility of accessing a more financing if you have the capacity to face the mortgage.

So, if you are interested in applying for a second mortgage, it is essential that the first one does not consume all the resources that you have allocated to pay the loan. This is because, in this case, you may find it more difficult to access a second or third financing.

What are the reasons for requesting two mortgages?

The reasons for accessing two or more mortgages can be many. However, you must be clear that There are different reasons why requesting two loans of this type can be a very good option. For example, it may be to carry out a reform in the house, buy a second residence, buy an apartment as an investment to be able to rent it, among others.

Before making the decision to apply for a second mortgage, it is best to Make an analysis of your current economic situation. In this way, you can be sure that you have the ability to assume loan repayment. It is a point of great importance, since it can cause you long-term problems, for example, ending up in debt.

What are the conditions of a second mortgage?

The reality is, a second mortgage It has many similarities with respect to the first. However, there are certain aspects in which they differ:

• Lower Financing: depending on the profile, the most common is that the bank grants a lower percentage than that offered in a first mortgage.

• Shortest return period: The time you have to repay the money on this mortgage for a second home is generally shorter if we compare it with a first mortgage.

What are the requirements to apply for a second mortgage?

Regarding the requirements to be able to access a second mortgage, it is necessary to clarify that They can be more demanding if we compare them with the conditions that you had to meet to access a first mortgage. For this reason, the bank will be in charge of take a closer look at your profile before granting the loan. In this way, you will ensure that you can actually take care of two debts instead of one.

Here go the minimum requirements you must meet in order to obtain a positive response from the bank are the following:

• Economic and labor stability: In other words, if you have a Fixed contract, with a certain age and also, you have a good income. If this is your case, it is most likely that they can grant you the credit without any inconvenience.

• Not having debts: It is necessary to be clear that the bank will be in charge of reviewing the files as ASNEF or CIRBE, to find out what loans the applicant has or what debts you have pending.

• Savings: you must have savings to be able to face the payment of the percentage requested by the bank, in general, it is 20%. On the other hand, there must be a 10% extra savings to be able to cover some expenses that the mortgage loan will generate.

• A endorsement: It will be ideal for the bank to grant you the loan, since in this way, You will have a double guarantee when applying for a mortgage. For example, it is very common to offer as a guarantee a floor that is free of charges.

How does a second mortgage work?

Without a doubt, the capital of real estate is a valuable assethowever, unlike cash, this is not something that can be used in an emergency. That is why, A lot of people apply for a second mortgage so they can use the equity in their home and put it to work.

Instead of having that money earmarked for a property, you can get a second mortgage to be able to carry out investments. For example, you can buy another real estate or carry out a reform in the house to later be able to sell it at a higher price.

After reading this article, we are very interested in knowing your opinion about how many mortgages the same person can have. If you are interested in sharing it with us, you can do so in the “Comments” section of our Blog.

If you find yourself in a situation that you cannot resolve on your own, do not hesitate to contact Oi Real Estate. A team of professionals will be at your disposal and will help you throughout the process. We are waiting for you!

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