Can You Have Two Mortgages on One Property? Here’s What You Need to Know

Can You Have Two Mortgages on One Property in Dubai?

In short, no, it is not possible to have two mortgages running simultaneously on a single property in Dubai. Unlike some international markets where secondary charges or “second mortgages” can be layered onto an existing mortgage, UAE banks do not allow multiple mortgages to be registered on one title deed.

However, homeowners can apply to remortgage, replacing their existing mortgage with a new one, usually from a different lender. This process allows you to restructure your loan, adjust repayment terms, or release equity from your property.

What Is Remortgaging?

Remortgaging refers to the process of replacing your current mortgage with a new mortgage, usually with a new lender. This means that whilst you are taking a new mortgage, this replaces the old one, rather than becoming a second mortgage in Dubai.

This is different from a product transfer, which is when you renew or change the terms of your existing mortgage with your current lender, without refinancing elsewhere.

Remortgaging in Dubai typically involves:

• Paying off your current mortgage in full

• Taking out a new mortgage under updated terms

• Registering the new loan with the Dubai Land Department

While it may involve fees and formalities, the benefits can be significant depending on your goals.

Reasons to Consider Remortgaging in Dubai

Here are some of the most common reasons why property owners choose to remortgage:

1. Secure a Better Interest Rate

If market interest rates have dropped since you took out your original loan, remortgaging may allow you to reduce your monthly repayments or overall cost of borrowing.

2. Switch to a Fixed Rate

If you're currently on a variable or EIBOR-linked mortgage, switching to a fixed-rate product can provide more predictable repayments and peace of mind, especially in times of rate volatility.

3. Release Equity

Need additional cash for renovations or to invest in another property? Remortgaging allows you to borrow against the increased value of your home and unlock available equity.

4. Change Your Repayment Term

Some borrowers choose to shorten their loan term to pay off their property faster — or extend it to reduce monthly obligations. A remortgage can help adjust your loan term to match your financial goals.

What Is the Process for Remortgaging?

While the process is similar to applying for a new mortgage, remortgaging involves a few additional steps:

Property Valuation

The new lender will conduct a valuation to determine your property’s current market value.

Eligibility Assessment

You’ll need to meet standard mortgage criteria: sufficient income, stable employment, low debt-to-income ratio, and a good credit profile.

Liability Letter from Current Lender

Your existing bank will issue a liability letter stating the outstanding amount to be paid off.

Offer from New Lender

Once approved, your new lender will issue a final offer, which includes the terms, rate, and repayment schedule.

Settlement and Transfer

The new bank settles your old mortgage, and the Dubai Land Department updates the title deed with the new lender.

Fees and Charges

Remortgaging involves associated costs, including a valuation fee, processing fees, and the DLD mortgage registration fee (0.25% of the loan amount).

Conclusion

While a second mortgage is not permitted in Dubai, remortgaging offers a viable and potentially strategic alternative. Whether your goal is to reduce your monthly payments, lock in a better rate, or access equity for other investments, the remortgage process can help you optimise your current financial position.

As with any major financial decision, it’s important to seek expert guidance. A mortgage advisor can help you assess your options, compare lender offers, and navigate the documentation involved.

If you're thinking about refinancing your home loan in Dubai, or were exploring the idea of a second mortgage, remortgaging might be the smarter path forward.