Multiple guarantees question

Will banks allow multiple guarantees on an asset (unencumbered house).
Scenario.
Assume servicing of loan not a problem.
Son has saved enough for a deposit (20%, 65K) for property number 1 (PPR).

Father (retired) comes along and says " You know the house next door (property number 2) to me has just come on the market, and your Aunt already owns the house on the other side of it, would you buy this one as we would then have 1600 sq mts zoned medium development for the future".

Father offers to put up security for 105%. I say, no probs, but when I see property number two it needs about the same amount as my saved deposit (65k) spent on it.

My question is will the bank take security over the fathers property for property numbers one and two.This would represent a total security (two properties) of $156K on a unencumbered property of 550k (about 29%). Both loans will be through the same bank.

I want to help him, so looking for a win win for both of us.
Any one with multiple securities experience.
regards

 

How would the amount be only $156K?

 

It's possible as long as the lvr there

 

$156 represents 20% of $780K (value of the two properties being purchased.No LMI involved).So max security on 550k property (Fathers security property) is 156k.
regards