Is it possible to take out 2 mortgages in parallel in 2021 and in which banks?

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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.

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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.

What should you consider?

Any bank strives to increase its client base, but obtaining a second mortgage loan is a high risk for the bank, so the client’s data will be considered more carefully.

Before making a decision to apply for a second mortgage, you should first take into account your income and evaluate your solvency for a long time, since the presence of a second loan significantly increases the financial burden - for a positive decision on applying for a second mortgage without repaying the first, late current payments are unacceptable.

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.

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.

For one person

Credit analytics, which is followed by large banks of the Russian Federation, provides for the level of the client’s maximum financial burden. This can be seen in the monthly payments that are set. In general, they should occupy 40% of the family budget, no more. When the client provides certificates showing the size of the family’s income, the impact on the budget of loan deductions will be calculated by the system. If it turns out to be above the maximum 40%, the citizen is declared insolvent.

Even when the client submits an individual application, indicating only himself as the payer, the bank takes into account the income of all adult household members. A spouse's salary, a pension for elderly parents, even a student's scholarship.

All official sources of profit from which the total family budget is formed. After all, when taking out a mortgage loan, a person affects the interests of everyone.

Banks oblige people to provide documents for other household members besides themselves. This increases your chances of getting approved.

Experience, place of work and stability are important. The longer a person has worked, the correspondingly higher his trustworthiness is assessed. The employer company will also be studied. If the experience is still short, the manager may advise the client to wait and re-apply later.

It is more difficult for one borrower to get 2 mortgages for himself, since his reliability is doubly studied .

The only way to avoid this is to immediately visit another after approving a loan from one bank. While the bathhouse BKIs are being updated. Of course, later some claims may be made against him, but he can excuse himself with his ignorance. The BKI system is not available to ordinary people.

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.

What are the borrower requirements and approval criteria?

Organizations try to create different offers to attract more customers. However, most banks have a number of standard requirements that future borrowers must meet. This is due to risk factors.

There are ways to increase your chances. You need to follow a few simple steps:

1) Provide evidence of additional income (a lease agreement will do). For example, a person has other real estate that he rents out to tenants. It doesn’t matter whether it’s a home or a garage. The main thing is that people pay a certain amount for this every month.

2) Attract more guarantors and co-borrowers. The lender will evaluate everyone's income and add it up. However, the requirements for co-borrowers are similar to the main payer. They must have a decent income and be age appropriate.

3) Accumulate a decent amount of work experience, preferably continuous, without layoffs. Unofficial employment is not considered.

4) Be within the financially stable age of 25-35 years.

5) Have additional property - another apartment, garage, house, land or car.

6) Have unspent maternity capital - the law allows the money to be used as a down payment or a regular payment.

7) Distribute existing debts to the maximum.

Take out insurance – life, health, and also the purchased object.

9) Transfer more money for the down payment

Experts also advise concluding an agreement for the maximum possible period. Let time be your ally. And try to pay as quickly as possible.

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.

For one dwelling

In practice, this often happens:

1. Two spouses wishing to purchase housing each take out a mortgage. The subject of the transaction is one property. Each person will bear their own financial obligations separately, while becoming the owner of ½ of the apartment.

Upon repayment of the loan, the bank removes both encumbrances , and the property is completely transferred to the spouses. However, if they are officially signed, if there is a possible delay in payment from one, the bank may require “help” from the second.

2. Borrowers are cohabitants , live together and took out a loan separately. Then each client will be considered separate, and his debt cannot be claimed from the second. After all, there is no relationship between them other than real estate. However, if one borrower stops making payments, the bank sells ½ of the property without touching half of the second, if he continues to pay regularly.

3. The seller - the borrower , who has not yet fully repaid the mortgage for the apartment, decides to sell it with the approval of the bank. They find a buyer, who, not having enough cash, has the right to take out a loan for the remaining amount.

There are 2 options - the balance of the encumbrance, i.e. outstanding debt passes from the seller to the buyer. He becomes a borrower instead of the previous client. Both will continue to pay, one will have the interest outstanding, the other will have the balance. Or, before registering the property, the seller pays off the remaining amount of the mortgage, removing financial obligations. Here the decision is made jointly with the participation of three parties: the bank and two citizens.

People who are not related to each other are less likely to get it. For example, two friends or roommates. It is unlikely that the second will agree to repay the debt of the first if his solvency suddenly decreases. Financial institutions always analyze different situations and make forecasts. Family members or a married couple have more chances, because... they can act as co-borrowers and help another. Moreover, a person can be obliged to help a defaulter if he is a relative, and they initially took out a mortgage together.

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.

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.

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.