Credit despite mortgage
As a rule, lenders have no particular concerns about lending a loan despite a mortgage. Anyone who owns a financed property is by no means excluded from any further credit. It is even possible that the credit rating increases.
Requirements for a loan
As with any other borrower, the credit institution or lender always checks the creditworthiness of the applicant. A loan despite a mortgage is always approved if the ratio between income and installment charges is balanced. The previous credit behavior, as it results from the credit information, is added. The decisive factor for the applicant is that he can serve the credit he wants as an additional burden on a monthly basis. This results from the submitted application documents. This includes the mortgage charge, a monthly allowance and other costs.
If a comparison with the monthly income shows that there is enough financial leeway to pay installments, a loan approval is likely. This new loan is not additionally secured by the lender via a land register entry. There is priority anyway the bank that has financed the property. It would therefore be no advantage and would only cost.
Preliminary considerations on additional credit
A mortgage is a long-term burden that, unlike the other loans, does not take off in a reasonable amount of time. Most real estate loans have only a limited interest rate. If you take an additional loan despite mortgage, it should keep an eye on the end of this bond. It is possible that a so far favorable real estate financing with the extension can lead to higher monthly installments. This is the case when the original financing was in a low-interest phase and the extension is now carried out at higher interest rates.
If this extension then coincides with the term of another loan, the burden may exceed the available income. If there is a possibility, a mortgage loan should therefore be concluded in such a way that it is repaid before the end of the previous real estate financing. Depending on the remaining term of the financing of the property, there is also the possibility of negotiating a new forward loan in addition to the new loan. Thus, the low interest rate of the house is ensured for the future.