Is it possible to take out two mortgages: conditions and methods of obtaining

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Mortgages are issued for an average of 15 years or more. During this time, your life situation may change significantly. So, with the birth of a child, the need for more living space arises. The old apartment already seems small. You can buy a home by taking out a second mortgage. However, the first loan may not be paid off yet. In this case, banks pay attention to the borrower’s reliability and financial situation. In some cases, your application for a second mortgage may be approved. However, the client must be prepared for thorough checks by the financial institution.

Is it possible to take out a second mortgage after paying off the first?

To answer the question, it is necessary to refer to the norms of the current legislation. The interaction of the borrower with the bank when applying for a housing loan is regulated by Federal Law No. 102 of July 16, 1998. The regulatory legal act does not reflect restrictions regarding the issuance of a mortgage if the borrower previously took out a loan to purchase real estate. However, the bank wants to be sure that the client will be able to make payments on time. In addition, the company is not obliged to issue a mortgage. It's her right. Banks agree to enter into deals if the second mortgage is beneficial to them.

Attention

If a person has previously taken out a housing loan and managed to pay off the loan, the loan will be issued on a standard basis. First of all, the borrower's credit history will be assessed. If it is positive, the likelihood of being approved for a second mortgage increases significantly. In addition, the borrower's income is taken into account. If the profit allows the calculation, the application will be approved.

When the first mortgage is not repaid, banks first look at the presence of a formal job, monthly income and current financial burden. If a person has proven himself on the positive side and has the ability to pay off obligations, the application may be approved. However, it is worth considering that the terms of cooperation may be more severe. In particular, the bank may increase the down payment requirements for the second mortgage.

The essence of the problem on the part of banks

The current legislation of the Russian Federation does not prohibit the execution of several mortgage loans at the same time. Neither 102-FZ nor the Civil Code says anything about this. Therefore, the final decision on the advisability of double lending rests solely with banks.

Most credit institutions adhere to an unspoken rule according to which no more than 2 products of the same type are allowed for one borrower. That is, no more than 2 consumer or car loans.

Mortgage here is an exception for many banks due to its characteristics. A long repayment period and a significant monthly payment are factors that increase the risk of non-repayment or delays. Two existing mortgage loans from one borrower can ultimately become an unbearable burden and lead to an irreversible process - default (the inability to service one’s obligations).

Therefore, the possibility of simultaneously obtaining 2 mortgages at once is discussed with a specific bank on an individual basis. A positive decision can be made for an almost ideal client who meets the following requirements:

• permanent official income sufficient to comfortably service two loans;
• stable employment (preferably with a long period of experience in one place of work);
• excellent credit history;
• highly liquid collateral;
• conclusion of a full insurance contract;
• Full compliance with age and registration restrictions.

An additional advantage will be the provision of guarantors who also meet all the requirements of the lender.

CONCLUSION: If the client manages to convince the bank of his reliability and creditworthiness, then there is a high probability of approval of two mortgage applications at once.

Is it possible to take out a second mortgage without paying off the first one from another bank?

Regardless of which bank the mortgage was obtained from, financial institutions carefully evaluate the borrower. There is no direct prohibition on obtaining a second home loan from another bank. However, a person may face difficulties in obtaining approval. In particular, it is necessary to have a large salary. It should allow you to smoothly pay off your obligations to the company on the second mortgage.

Additionally, compliance with all bank requirements is assessed. If at least one of them is not met, the application for a second mortgage will be rejected. The very fact of the presence of an additional housing loan may become the basis for a negative decision. To increase loyalty on the part of a financial institution, experts recommend attracting an additional co-borrower, a guarantor, and providing property as an encumbrance, if any.

What to do in case of refusal?

Having received a refusal to issue a second mortgage agreement, a potential borrower can act as follows:

• Submit a new application after some time (no earlier than 2 months);
• Contact other financial institutions. If you fail to obtain a loan from one bank, feel free to contact others;
• Sell ​​the first property (if it is no longer needed - for example, there is a need to expand the living space). Since the mortgaged apartment is pledged to the bank, the borrower will need written consent to sell it;
• Take out a consumer loan to pay off existing debt. This method is one of the riskiest, because consumer loans carry higher interest rates.

Is it possible to take out 2 mortgages at the same time?

In practice, a citizen may need two apartments. The application can be approved if the person earns well and meets all the bank’s criteria. An alternative is to submit 2 applications simultaneously, without notifying the company that such an action is being carried out. The total mortgage payment should not be more than 50% of the total family income. The rules apply if the spouse acts as a guarantor. In another situation, only the income of the main recipient of funds will be taken into account.

Banks will definitely require confirmation of the amount of earnings. To do this, you will need to provide a certificate of income. Additionally, the lender will inquire about your length of service and job stability. If the income is high, but the person has only recently worked in the last place, the application for two mortgages at the same time will be rejected, but will be offered to try later.

Additionally, the bank collects information about the number of dependents and the presence of a spouse. The amount of expenses depends on the number of citizens supported by the borrower. Therefore, the bank is more willing to issue loans to families without children.

IMPORTANT

If the family income is not enough to pay for two mortgages, the application will be rejected. The company will not risk funds. In this case, the only option is to simultaneously send applications to different banks. The main thing is that the credit history bureau does not quickly receive information about the signing of a mortgage agreement. However, you need to sensibly assess your strengths. If the borrower is not sure that he will be able to make simultaneous payments, it is better to refuse such an action.

Is a second mortgage available today?

The possibility of re-applying for a home loan exists, but it is not so easy to implement. Most banks try to minimize any risks associated with a mortgage. For this reason, they carefully screen each potential client who applies for a re-loan. This explains the length of time it takes to obtain a second home loan compared to the first.

As a rule, mortgages are issued for a long term. During its repayment, the life circumstances of the borrowers change, and often there is a need to improve living conditions. For example, children are born in families with an unclosed loan, so more spacious housing becomes necessary. This explains the interest of many people in this question: is it possible to get a second mortgage if the first one has not been repaid?

In Sberbank, VTB or any other large financial organization, situations do not often arise when a borrower meets all the criteria for a second loan and is given the opportunity to purchase two properties through mortgage lending. Despite the fact that banks work with this type of loan, such transactions are considered complex, so only experienced employees deal with them.

Requirements for obtaining a second mortgage loan

First of all, the bank evaluates the client for compliance with the requirements. They are approximately the same, regardless of whether the citizen has managed to pay off the mortgage or is going to take out a second housing loan if he has a first one. However, a number of differences still exist. In both situations, the company pays attention to the following parameters:

1. Solvency. All income that the borrower can officially confirm is taken into account. They take into account not only the amount of wages and other profits, but also take into account expenses. The total of your first and second mortgage payments should not exceed 50% of your total income.
2. Number of dependents. The amount of expenses depends on their number. All minor children, elderly relatives living with the borrower, as well as other persons whom the citizen supports are taken into account.
3. Credit history. Second mortgages will be approved only for persons who have proven themselves to be positive. If a person has not defaulted on loans, the bank will be loyal to the client. Otherwise, it is recommended to correct your credit history before applying. To do this, you need to take out several small loans and pay off your obligations on them in a timely manner.
4. Age. Banks agree to cooperate with persons who are at least 21 years old. The maximum age limit is 65-75 years, depending on the internal policy of the financial institution. The indicator is set at the time of closure of obligations.
5. Availability of official employment. If the second mortgage borrower does not have a job, the application will be rejected. The exception is situations when a citizen has third-party income that allows him to make monthly payments. An example is making a profit from renting out housing. However, the income must be official.
6. Availability of citizenship. Only citizens of the Russian Federation can count on receiving a second mortgage. Applications from foreigners are rejected in most cases.
7. Permanent registration in the region where the bank operates. If a person wants to move, he should contact organizations that have a widespread branch network. Sberbank, VTB, Gazprombank have a large number of branches.

If a person wants to take out another mortgage, but has not managed to close the obligations on the first loan, the conditions will be more severe. In addition to the need to comply with the above rules, a citizen must confirm the stability of his income. To do this, the bank is increasing the requirements for length of service at the last place of work. Banks are more willing to cooperate with persons who have been employed in an organization for 1 year or more. Requirements for total experience are 3 - 5 years.

For your information

Additionally, the amount of debt on the first mortgage is taken into account. If a citizen has paid off more than 70% of the total debt, the chance of getting a new loan will increase significantly. An advantage is the presence of an additional collateral that the person is ready to transfer as an encumbrance.

Features of military mortgage and maternity capital

You can also get a loan from a bank if you have government support in the form of assistance for the birth of a second child.
At the same time, the lender’s requirements for the client will remain unchanged: he must confirm the availability of income that is enough to repay two mortgage loans. You do not need to go to the Pension Fund to approve the decision, just immediately submit an application to the bank. The main thing is the presence of unspent maternity capital, which will be immediately used to repay the loan (for example, to pay the down payment).

As for home mortgages for the military, things are more complicated here. The law does not allow you to take advantage of the opportunity to apply for a second loan - you will first have to fully pay off the first loan issued under the state program, and only after that apply for a new loan.

How can I do that? There are two ways:

• Sell ​​the apartment, or pay off the debt using your own funds.
• Apply for a loan for consumer needs.

This is the only way military personnel will be able to obtain a new mortgage loan.

Required documents

Compliance must be verified. To do this, you need to collect a package of documents. The list of documents for obtaining a second mortgage must include:

• completed application;
• passport of a citizen of the Russian Federation;
• military ID for men under 27 years of age;
• a copy of the work book certified by the employer;
• income certificate;
• SNILS;
• marriage registration certificate, if the borrower is in an official family relationship, as well as a marriage contract, if one has been concluded;
• birth certificate of children, if present.

The co-borrower presents a similar list of documents. If the first mortgage has not yet been repaid, but the person wants to take out a second home loan, the standard list of papers must be supplemented with a transaction agreement with the bank. Then you need to provide a certificate confirming the amount of debt.

Separately, you need to collect documents for the premises that the borrower wants to purchase. Typically, the papers are prepared and provided by the property owner. The list must include:

• ID card of the apartment owner or constituent documents if the property is sold by a company;
• title documentation;
• cadastral and technical passport;
• a certificate confirming the absence of arrears in payment for housing and communal services.

The Bank reserves the right to request additional documents.

Additional requirements for the borrower

The second mortgage is provided on standard terms, like the first. To receive it, the borrower must meet additional requirements established by the bank. These include:

• citizenship;
• the borrower must not be under 21 years of age or over 65 years of age;
• the presence of permanent income of a certain amount;
• the borrower must have permanent registration in the city in which the bank’s office is located;
• The applicant's work experience in the same place should not be less than six months.

The age criterion is considered the most significant when the bank assesses the borrower’s compliance with the approved criteria. The legislation of the Russian Federation establishes that after reaching the age of majority (18 years), a person can already apply for loans. Unfortunately, not all credit institutions set the lower limit at this level. Similar restrictions apply to the permissible upper interval.

Citizenship and registration in the region within which the property is located are mandatory requirements for the borrower in connection with the judicial legislation established in the country. The bank may file claims against the borrower only in court at the place of its permanent registration.

Procedure for obtaining a second mortgage

If a citizen previously received a mortgage loan, but managed to completely pay off the obligations and remove the encumbrance, the registration of a second mortgage will be carried out according to the classical scheme. The borrower will:

1. Select a financial institution and the most suitable offer. It is important to familiarize yourself with the terms of cooperation in detail and evaluate the profitability of the tariff you like.
2. Apply for a second mortgage and wait for a decision. You can contact the company during a personal visit or through the official website.
3. If the answer is yes, you must provide a package of supporting documents. The bank will analyze them, check the initial data for compliance with the information specified in the paper, and then make a final decision.
4. If the company has approved the application, it is necessary to select a suitable premises. The borrower is given from 30 to 90 days to complete the procedure.
5. Agree with the apartment owner to purchase a home with a mortgage, enter into a preliminary purchase and sale agreement, and initiate the appraisal procedure.
6. Submit real estate documents to the bank. The company will check the housing for compliance with the requirements. Money is provided only for the purchase of liquid real estate.
7. Sign a loan agreement and a purchase and sale agreement.
8. Refurbish the premises and prepare a mortgage. The document will be kept in the bank until the obligations are completely closed.
9. Insure real estate, as well as life and health, if there is a need for such.

Please note that
the Bank does not issue funds intended for the purchase of an apartment. The amount is transferred by bank transfer to the seller's account.

If a citizen has not yet managed to repay the mortgage, the procedure for obtaining a second mortgage will follow the same procedure. The difference will be the provision of information about the presence of an unclosed loan, as well as the provision of an expanded list of documents. It is necessary to remember that the bank conducts a thorough check of a citizen who has already received a mortgage, but has not closed it. If your application is rejected, you can try to contact another organization. However, you should not mindlessly apply to all banks. Having received 2 or 3 negative answers, you need to postpone applying for a home loan until the obligations are closed or increase your reliability in the eyes of a financial institution by attracting additional guarantors, providing 1 more collateral or making a deposit.

What does the law say?

Mortgage lending is regulated by 2 regulatory documents - Federal Law No. 102 and the Civil Code of the Russian Federation . Having studied these sources, we can come to the conclusion that the bank cannot refuse a client to receive a loan to purchase a home only for the reason that he is already paying off a similar loan.

If a citizen has a high income and meets the basic requirements of a financial institution, obtaining a second mortgage is possible. However, in this case, the borrower may face rather strict conditions and restrictions.

Which banks can I get a second mortgage loan from?

High competition in the financial market forces borrowers to meet halfway requirements. The terms and conditions of financial institutions may vary significantly. To find the best deal for a second mortgage, you need to analyze the data in its entirety.

Please note, these conditions are valid at the time of writing; to clarify current information, please contact your consultant.

Conditions for obtaining a second mortgage

Mortgages are issued for the purchase of apartments in finished and under construction buildings, townhouses, apartments, houses. Sberbank, Gazprombank and Rosbank also issue loans for the purchase of parking spaces (garages). The mortgage term in Sberbank, Rosselkhozbank, Gazprombank, Raiffeisenbank, Alfa-Bank and Promsvyazbank is 30 years, and in Rosbank - 25 years.

The collateral for a mortgage can be purchased or owned real estate, which must be insured against the risks of loss and damage for the entire term of the mortgage. Life insurance is optional, but if you cancel it, the rate automatically increases by 1%.

The loan rate in Sberbank and Promsvyazbank will be from 8.6%, in Rosbank - from 8.25%, in Alfa-Bank - from 8.99%, in Gazprombank - from 9%, in Rosselkhozbank - from 9.3%, and at Raiffeisenbank - from 10.25%.

The down payment on a loan in Sberbank, Alfa-Bank, Rosselkhozbank, Rosbank and Raiffeisenbank will be at least 15%, in Gazprombank - 10%, and in Promsvyazbank you can get a mortgage without it. The maximum amount in Sberbank and Rosbank is not limited, in Gazprombank, Rosselkhozbank - 60 million rubles, in Alfa-Bank - 50 million rubles, in Promsvyazbank - 30 million rubles, and in Raiffeisenbank - 26 million rubles.

Is it possible to take out a second mortgage without paying off the first one at VTB?

VTB can also issue a mortgage if there is an unclosed loan. However, the client needs to demonstrate his trustworthiness. To do this, you must provide a certificate of income, documents confirming official employment and its stability, and also include in the list papers for expensive property owned.

If the client meets the company's requirements, the organization will issue a second mortgage under standard terms. The minimum interest rate under the proposal will be 8.4% per annum, and the loan amount will be up to 60 million rubles. The down payment will be from 20% to 50%, depending on how risky the transaction is for the bank. It must be remembered that it is difficult to obtain the minimum bid on the offer. Usually the real figure is 1 - 2% higher.

How to apply online

You can apply for a mortgage and receive a preliminary decision without visiting your chosen bank. To do this, you need to fill out a form on his website.

For example, in Rosselkhozbank you need to indicate:

• a branch where it is convenient to obtain a mortgage;
• FULL NAME;
• date of birth;
• contacts (phone, email);
• the amount of the requested loan;
• desired loan term.

The application is immediately transferred to the bank’s specialists for work. They will check all the data provided and, if necessary, contact you to clarify information or request documents (for example, copies of a passport or salary certificates). A decision on the application is made within 1 to 10 days. You will be informed about the results by telephone.

Should I take out another mortgage?

Taking out a second mortgage is a risk. Payments will already “eat up” a significant part of the income, and then new contributions will be added. It is also possible that one or more sources of income will stop working. Risks need to be taken into account, and therefore it is not always advisable to take out a second loan - this can be done, but only with caution, and only this is absolutely necessary:

• if you urgently need to improve your living conditions;
• if the family budget allows paying contributions.

It is quite possible to get a second mortgage loan. But only if the borrower meets certain requirements. Additionally, it is worth understanding that the registration process can be initiated only if the borrower is confident that he has the strength to make payments on both loans at once.