If you are planning to purchase a second home or holiday home you’ll need to take another residential mortgage. If you have plans to let this property out you’ll need to take out a buy to let mortgage, see our BTL Guide.
A second home mortgage works just like a normal residential mortgage; there are some considerations of s second home vs a regular first residential mortgage;
● Mortgage lenders will need to understand the rationale for a second home; its locality and usage etc.
● You will normally need a 15% deposit vs a 5-10% deposit for a first home or mortgage
● Mortgage lenders will also need to check affordability of both properties based on your income and expenditure.
You will also need to take into consideration second home stamp duty requirements via our stamp duty calculator for second homes.