Finding The Best Second Home Mortgage Deal For Your Circumstances
If you’ve decided to take the plunge and invest in a second home, you will no doubt be looking into the finance options available to you. The good news is that second home mortgages work in the same way as regular mortgages. With the right team on your side your side, you can feel confident in your chances of success. Whether you are looking to purchase a family holiday retreat or a home away from home to reduce your commute, we can help you seek out the most appropriate mortgage deals on the market for you.
What is a second home mortgage?
A second home mortgage is exactly what it sounds like – a long term loan in your name secured against a second property. It is completely separate from your existing mortgage, and shouldn’t be confused with remortgaging – this is a second mortgage, but on the same property. Second home mortgages can help those with growing wealth to expand their portfolio and enjoy some extra space whether as a holiday home or partial residence.
How much can I borrow with a second home mortgage?
The amount you are able to borrow will depend upon the same criteria as any other mortgage. Using their standard affordability calculations, lenders will work out the amount they will lend based on your income and monthly outgoings. Of course, the only difference to consider when it comes to second home mortgages is that your existing mortgage repayments will also form part of your outgoings – which may mean the amount you can borrow is lower than your existing mortgage. However, there are lenders out there you use larger income multiples in their affordability calculations – if you want help accessing these lenders, talk to our team today!
Maximise your chance of approval with specialist advice from an expert in Second Home Mortgages
How much deposit will I need for a mortgage on a second home?
Most second home mortgages are treated in exactly the same way to a standard residential mortgage. And, as with any mortgage, the higher the deposit, the better your terms are likely to be. More than that, a higher deposit can help mitigate the impact of bad credit or any adverse financial history, as the lender will perceive you as less of a risk. Despite this, you don’t have to put down an enormous deposit in order to secure your second home. Talk to one of our advisors today and we can talk through your financial situation and get to work identifying the best options available to you.
Do I have to pay a higher stamp duty charge if I am purchasing a second home?
We hate to break it to you, but yes. If you’re buying a property in addition to your main residence, rather than to replace it, you will be liable for extra stamp duty charges. Currently, all those who buy a property valued at £125,000 of higher will have to pay stamp duty. If the property in question is your second home, you will also be charged an additional 3% of the property’s value.
Second home mortgages FAQs.
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Expert advice & support for your second home mortgage.
When the Bank Says No is a team of trusted mortgage advisors with a passion for helping clients achieve their second home. Whatever your situation – whether you have bad credit, a small deposit, or are looking to release equity from your current house – we can help you asses your options and move forwards confidently and well informed. To us, nothing is more important that making our clients’ property dreams a reality. When it’s time to expand your property portfolio, our advisors are here to handle the details.
Helping you grow your assets.
You might think buying a second home is complicated, but we’re here to make things simple. Though there are additional financial considerations, second home mortgages are nothing to be afraid of. Our experienced second home mortgage specialists have helped people grow their assets successfully. With in-depth knowledge of the mortgage market, we’re committed to helping you achieve your future goals.
