Second Home Mortgages

When it comes to finding the right mortgage, the excitement of purchasing a second home can soon fade. Quotezone can save you time and money with its independent comparison tool , helping you take the next step on your property adventure.

Can I get a second home mortgage if I already have a mortgage?

Yes – even if you have money outstanding on your original mortgage, if you have enough equity in the property and are financially stable enough to cover the second home mortgage payments, you have a great chance of succeeding in your application to a lender.

Is a second home mortgage only for properties I’ll personally use?

No – you can also take one out to purchase an investment property or to house a friend or family member.

How much can I borrow for a second home mortgage?

Normally when you apply for a mortgage, a lender will calculate the amount you can borrow by multiplying your annual salary by 4.5.  When you’re applying for a second home mortgage, the lender will use the equity you have in that property along with your credit score to calculate how much you can borrow. 

The more equity you have in your house, the greater the amount you can borrow.

What deposit do I need for a second home mortgage?

The percentage varies from lender to lender, but you should have at least a 15% deposit ready. 

What are the disadvantages of a second home mortgage?

For some buyers, having to come up with another deposit can be hard work, especially if you’ve been paying off your first mortgage.  

There is then the financial burden of paying for two mortgages if your first one is ongoing.

When a lender assesses you for a second home mortgage, the checks are far stricter, reflecting the higher level of risk. The purchase of a second home could ultimately put your first home at risk should you find yourself unable to keep up with the mortgage repayments and needing to sell your first home to cover these payments.

Is a second home mortgage added to my standard mortgage?

No – the two are kept separate to ensure your main residence isn’t put at direct risk (though it is still vulnerable if you’re unable to maintain the payments on a second mortgage).

How can I get approved for a second home mortgage?

Make sure you can demonstrate on paper that you can afford two mortgages.  

Use a comparison tool to find a mortgage that you know is affordable for you.

If you can, cut back your spending in the quarter before you apply for the mortgage, and as always, work on improving your credit score.

If you’re ready to find a new mortgage, compare second home mortgages now.