Second Home

A second home mortgage is for someone who already owns a home and is looking to buy a second property.

A second home mortgage would typically be used for:

• a property intended for use as a weekend retreat or weekday work base
• a holiday home you use yourself or rent out occasionally
• helping a family member get on to the property ladder

The reason for taking out a second home mortgage is important as it will affect the type of mortgage you get.

The conditions for getting a second mortgage are much the same as a first mortgage – except that the affordability checks are more stringent. That’s because having two mortgages will put you in a higher risk bracket in the eyes of lenders.

Can I get a second mortgage to buy another house?

Being accepted for a mortgage for a second home largely depends on the state of your finances. You’re more likely to be approved by lenders if you have a large disposable income or you’ve nearly paid off your first mortgage and have capacity to take on a second home loan.

Lenders will assess your track record in repaying your current mortgage and carry out affordability checks to see whether you could comfortably afford to pay the monthly instalments of two mortgages.

Like a primary mortgage, the affordability criteria for a second property mortgage is calculated on income and outgoings. The difference is that it’s usually harder to meet. Make sure your finances are in good order. We can use mortgage calculators to see how much you could borrow and what the monthly repayments are likely to be.

What type of mortgage do I need for a second home?

If the property is to be used as a second family residence or to help a relative get on the property ladder, you’ll need a second  residential mortgage.

If you want to buy a holiday home that you plan to let for most of the year, you’ll need a holiday home mortgage.

How much deposit do I need to buy a second house?

If you’re buying a second residential home, you’ll generally need at least a 15% deposit. But the more you can put down, the better chance you’ll have of getting the most competitive deals.

You also need to consider the extra costs of buying a second home, including additional rate stamp duty and second home insurance.