Can I have a mortgage on two properties?

A reader from Worcester wants to know if she can have a single mortgage on two properties.

Tony Davis, myfinances.co.uk mortgage expert from Mortgage Meadow, takes her through the problem.

Wendy from Worcester asks:

Is there such a thing as having a combined mortgage on two properties?

We need to remortgage in October '08 for £125,000 (value of property £179,000), we would also like to buy a second home and need a mortgage for £110,000 (£280,000 value)

Can I have one mortgage that covers both properties?

Tony replies:

The short answer is yes, although it is not a common solution offered and it is certainly out of the realms of “standard” lending practice, as such you could find it hard going to find a lender that would agree. This sort of transaction is referred to as 'cross charging'.

Subject to your circumstances and needs, the remortgage element of your requirement is straightforward and there will be many lenders for you to choose from. The second home mortgage does also give you options to choose from, the likes of Bank of Scotland and Cheltenham and Gloucester have provided funding for some of our clients second home purchases and you have a sizeable deposit.

These second home mortgages can be granted on similar if not the same terms as your main residential mortgage and costs and charges should be compared against any lender that will consider a cross charge.


If you have a question for Tony, go to the myfinances.co.uk Ask the Mortgage Expert section.

Or for more information or mortgage advice go to Mortgage Meadow.

Mortgage Meadow is an independent mortgage broker and is authorised and regulated by the Financial Services Authority.