Second Home Mortgages

Arranging a second home mortgage purchase, such as a country retreat for the family or a pied-à-terre in the city, is a relatively straightforward process when approached in the right way.

Essentially, second home mortgages follow the same process as mortgaging your main residence. The only difference is the monthly payment on your current home is factored into the lender’s affordability calculation, ensuring you are able to comfortably afford both payments on your current income. You will also need to satisfy all the usual criteria, such as having a large enough deposit, a clean credit report, and a suitable repayment schedule in place.

WHAT DO I NEED TO KNOW ABOUT SECOND HOME MORTGAGES?

One thing to be aware of is that interest only mortgages are often more readily available for second home mortgages, with the expectation that the second property will be sold before the main residence. The same also applies if you are looking to purchase a second home for a family member, a child at university or an elderly parent, for example.

Generally, it is better to have some distance between the two properties, otherwise the lender may suspect that the property is being purchased as a buy to let instead. This is important to consider to ensure you avoid any expensive buy to let rates for a property which is actually intended as a family residence.

HOW CAN ENNESS HELP WITH SECOND HOME MORTGAGES?

As ever, criteria for second home mortgages will vary from lender to lender dependent on their own regulations. One thing you can be sure of is Enness will be able to put you in touch with the right one for your second home requirements.

With the majority of our high net worth clients buying more than one property, we are proficient in sourcing the best solutions and the right lender for these complex and high value cases. If you’re looking to buy a second home, we will be invested in tailoring your application and ensuring the process is as smooth-running as possible.