This means that if you can’t make the payments, the bank will be able to take back the mortgaged home and thus get its money back. This is precisely one of the main differences between these mortgages and the more traditional ones we are used to.
Therefore, applying for a mortgage for a second home is a big financial commitment, so you must be sure that you can meet the installments and that you will not be left without your main home.
However, if you are willing to take this risk, second home mortgages are a very attractive option, as they allow you to acquire a second property without having to have all the capital at once. Here we explain how to request and manage them correctly.
What requirements do I need to apply for a mortgage for a second home?
If you are thinking of applying for a mortgage for a second home, the first thing to consider are the requirements that the bank will ask you. While these may vary by entity, in general the requirements for second home mortgages are generally stricter than those for traditional mortgages.
As usual, financial institutions usually have a number of requirements like the following:
- Have a minimum duration of the employment relationship (from 1 to 3 years, depending on the entity).
- Have a sufficiently high monthly income (around 1,500 euros net per month, although this will depend on the amount requested).
- Do not have any other loans in place, in addition to the first mortgage.
- Don’t be on the criminal lists like ASNEF or RAI.
- Be of a minimum age (between 25 and 30, depending on the entity).
- Having a home that we can mortgage as security for our payments.
In any case, each financial institution establishes its own requirements when applying for one of these loans. Therefore, it is best to use a tool that allows you to find the best option for your case, such as the Mortgage comparator rastreator.
How to apply for a second home loan
The mortgage application procedure for a second home is very similar to that for a first home, but there are some differences to keep in mind. Here we will tell you about some of the most important.
1- Calculate the amount you need
First of all, it is important to know how much money you can get through the bank or the lender. This will be determined based on your current and future ability to pay, as well as your monthly income and expenses.
Obviously the amount you will have to request will also depend on other factors, such as the value of the house you want to acquire or the amount of the first property you will mortgage.
2- Compare different mortgages
Once you know how much money you need, it’s time to compare different second home mortgages. The best way to do this is to use a reliable mortgage comparator like the one we talked about earlier from Rastreator, which will allow you to find the option that’s right for you in minutes.
You will simply have to indicate the amount you need, your financial profile and some other information, and the comparator will search for the ones suitable for your needs among dozens of mortgages.
3- Choose the most suitable mortgage for you
Once you have compared several mortgages, it will be time to choose the one that suits you best. To do this, you need to take into account a number of factors such as the interest rate, fees or expenses associated with the loan.
At this point it is essential to be aware of the costs associated with applying for and obtaining a mortgage for a second home. These costs include notary, registration and tax (VAT or AJD) fees, which must be borne by the buyer.
Apply for your second home loan now
In summary, if you are thinking of applying for a mortgage for the purchase of a second home, you must take into account your current and future ability to pay, the value of the property and the costs associated with the process.
As you can see, applying for a mortgage to acquire a second home requires certain specific procedures and requirements. However, knowing them in advance will help you solve the process successfully and avoid unnecessary problems. We hope we helped you with this post.