Second Home Mortgage

Helpful second home mortgage solutions that we’re proud of

When it comes to buying and getting a mortgage for a second home, you want a helpful independent mortgage broker with experience in second home mortgages.

So if you are planning to buy a second home, we will always tell you the things you really need to know up front.

Common Second Home Mortgage Questions

If you are thinking of buying a second home, make sure you are clear what you can and can’t do when it comes to getting a second home mortgage.

Do you have a question about a second home mortgage?
If you have a question about a second home mortgage that is not covered here, please contact us.
What is a second home mortgage?
A second home mortgage is simply a second residential mortgage. It is used for a couple of different scenarios, but always implies that you already have a residential home.

The first sceanrio could be the need to buy a second home for work, or for your family. You are aloud to have more than one residential mortgage, provided it makes sense to do so. Lenders don’t just assess criteria but also the plausability of your plans.

The second scenario, is where you want to buy a second home for use as a holiday home for your own use. If you intend to buy a holiday home for rental, you will most likely need a holiday let mortgage.

Its important to be aware when assessing a second home mortgage, lenders will make their assessment based on your income and will take into account your existing mortgage, debts plus the usual residential lending requirements.

Can you have two residential mortgages at the same time?
Yes, you are able to have two residential mortgages at the same time, provided you meet the lenders criteria.

One of the key elements of lending criteria, is that a second home mortgage is assessed on residential lending criteria becuase it is a regualted mortgage. As such a full assessment of income, pluus much more is rrequired. A lender will want to ensure your income can afford two mortgages.

In theory, there is no reason why you couldn’t have more second home mortgages. Its unlikely they would be called, third or forth home mortgages! But if the scenario was plausable and the personal income was sufficient, it could be possible. However like all things, it will come down to the indivuaidl lenders criteria at any given time. Remember lending rules and criteiria do and can change.

Some typical sceanrios where you will need a second home mortgage are:

Buying a second home to be closer to work. This is a common reaso, if your family home is further away. and you don’t want to commute long distances everyday.

You may want to buy a propert for a family member, such as a dependant relative or a child who wants a home. Maybe your child is going to University, or has a new job in a different city and rather than them renting, you decide to buy.

Or possibly you want to buy a holiday home for your own pursonal use. People sometimes confuse a holiday home with a holiday let. A holiday home is for your exclusive use. Its a home!

A Holiday let is a business with the main purpose of renting it out and making an income. In this case someone would need a holiday let mortgage, not a second home mortgage.

The good news is that some lenders on a second home mortgage will even allow you to rent the property out as well, but will restrict how much you can do this.

What are the second home mortgage rules?
Second home mortgage rules, broadly fit under three main categotries:

1. What your plan is.

You are only able to get a second home mortgage for a few specific reasons, but all of which means the second property you are buying is a residential home of some sort. Whether it is a holiday home, a home to be closer to work, or a home for another dependetn relative. Whatever it is, it needs to be some form of another home.

2. Is it plausbale

Do your plans make sense? Is it plausable? Lenders don’t just assess the hard facts, but have to be convinced whether it makes sense. If they are not convinced they won’t lend.

3. Affordability and residnetial lending criteria.

Becuase it is a second home, it is a residential mortgage. Income and a full affordability assessment will be done based on your existing circumstances (debts, existing mortgage, income etc) to see if you can afford both mortgages and both properties.

How much can I borrow on a second mortgage?
Becuase a second mortgage is used to purchase a second residential property, the borrowing assessment is based on standard residential lending criteria.

As such every lender has very different lending criteria and the amount you can borrow can vary hugely from one lender to another. Its really important you are aware that the amount you can borrow does vary hugely, as this can have a huge impact in terms of what you can do.

To get an accurate idea of what you can borrow on a second mortgage, get in touch with one of our experienced mortgage brokers. A comprehensive assessment is required to give you an accurate idea.

To avoid disapointment and a lot of wasted time, it is really important and helpful to establish exactly what you can and can’t do, before you even start looking at properties.

If you know exactly what you can borrow, it certainly helps you to focus your house hunting on the right properites and avoides disapointment.  And once you know exactly what you can do, it will help your house hunt to be much more efficient and when you find that second home, you’ll be able to offer and move with confidence.

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Our experts are here to help you, every step of the way

Our expert knowledge has been built from experiences in the independent, corporate and property world. From complex property portfolios to first time buyers. If there’s a way to do it, we’ll find it.

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( Second quarter 2018 )

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Research

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Mortgage Offer

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Talk to the Second Home mortgages experts

Call us on (01237) 472321

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