Second Home Mortgage Advice

If you’re a homeowner and want to buy another house, you might be wondering whether it’s possible to get a second home mortgage. Whatever your goals for buying a second home, we’ll explain how to apply for a mortgage, where to find the best lenders and rates, as well as details about eligibility and affordability.

Can you get a mortgage to buy a second home?

Yes, it’s definitely possible to get a mortgage to buy a second home in the UK. If the property is mainly for personal use (not to rent out), you can apply for a residential second home mortgage. These loans are designed for purchasing an additional property, perhaps in a different location for convenience or lifestyle purposes.

Second home mortgages are different from buy-to-let loans. The key distinction is your intent, whether you plan to spend time living in the property yourself rather than renting it out for income. Lenders will assess this and expect the second home’s primary use to be a genuine residence, not a rental investment.

How your affordability is calculated

Each lender will have methods for calculating affordability when purchasing a second home with a mortgage. Lenders want to be confident that you can manage both your existing mortgage and the new one comfortably. The key areas looked at will be:

• Your total income: Including your salary, bonuses, pensions, and any other legitimate sources.

• Monthly outgoings: Including your current mortgage, household bills, debts or loans, credit cards, and any dependents.

• Potential property costs: This includes general expenses such as council tax, maintenance, and insurance for the second home.

• Loan-to-income (LTI) ratios: Second homes can sometimes trigger stricter caps on borrowing, depending on your overall financial exposure.

• Affordability stress tests: Lenders will apply a stress test to your income, modelling whether you could still afford repayments if interest rates rise.

Second home mortgage calculator

Along with ensuring you can afford your repayments on both homes comfortably, lenders will use a salary multiple to calculate your overall borrowing capacity. The average is around 4.5 times your salary, but it may go higher. Your existing mortgage and how much you’re already borrowing will play a significant role.

The best way to get realistic figures is by having a chat with a specialist mortgage broker. However, you can get an idea about how much you could borrow on a second home mortgage with our calculator below:

Eligibility criteria for second home buyers

Each lender has its own set of criteria, but generally, these are the key factors that will influence your eligibility for a second home mortgage:

• Second home usage: Some lenders will limit how you use the second home. Occasional Airbnb letting or renting to family or friends might breach the terms. However, certain lenders are more flexible and can even allow you to rent out the property for periods (with conditions).

• Primary residence confirmation: Lenders will ask you to confirm that your main residence will remain your first home, and that the second property is for personal use only. If you're buying a new primary residence and turning your first home into a rental, a buy-to-let product may be more appropriate.

• Your deposit: Most second home mortgages require a larger deposit than first-time residential mortgages, but not always. Typically, a minimum of 25% is common, especially if your affordability is tight or the property is non-standard. But, some lenders can accommodate smaller deposits and may allow just 10%.

• Credit history: A clean credit file will improve your chances. Minor issues might still be accepted, but lenders tend to be stricter with second homes since you already have one mortgage in place. Serious or recent bad credit issues will usually require specialist lenders.

• Income stability: Steady employment or a consistent income (if you’re self-employed) can be influential. Most lenders want at least 12 months of income history, especially if you’re using bonuses or variable pay to boost your affordability.

How to get a second home mortgage

If you’re applying for a second home mortgage, comparing lenders and understanding each provider’s criteria can be time-consuming and confusing. Each lender will view second home applications differently, offering varying rates and terms depending on your circumstances.

Speaking with an adviser who specialises in second home mortgages can save you time and money. Our advisers will recommend the ideal lender based on your income, existing mortgage commitments, deposit, and intended use of the property.

If you’d like a free, no-obligation chat with an experienced broker who specialises in second home mortgage options, you can get started here:

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Are mortgage rates higher for second homes?

Typically, yes. Mortgage rates for second homes tend to be slightly higher than for main residences. This is because second homes carry a higher risk in the eyes of lenders, if your finances get squeezed, you're more likely to prioritise payments on your primary home.

However, this isn’t always the case and the difference in rates for second home mortgages may only be marginal if you have a strong credit profile, stable income, and a substantial deposit with a low overall LTV ratio (that also includes your first home).

A mortgage adviser can help ensure you find the most competitive rates based on your full financial profile and intended use of the property.

Best second home mortgage lenders

Here are some examples of popular mainstream mortgage lenders in the UK known to offer 2nd home mortgages and being open to applicants with multiple properties:

• Halifax: Although Halifax offers second home mortgages, the maximum LTV is 75%, meaning you’d need at least a 25% deposit. You can only own one other residential property, but occasional letting is allowed up to 4 months (with special conditions placed on the mortgage).

• Lloyds Bank: You need at least a 25% deposit to get a second home mortgage with Lloyds, meaning a 75% maximum LTV. It can sometimes be possible to let the property out for up to 4 months but you’re not allowed to use Airbnb for any duration.

• NatWest: The minimum deposit you’d need on a second home would be 10%, meaning a maximum 90% LTV with NatWest. You’ll need to explain the purpose of the second property and if it’s a holiday home, you can’t rent it out.

Second home mortgage vs second charge mortgages

While a second home mortgage is a separate loan used to buy a new property, a second charge mortgage is another loan secured against a property you already own.

A second charge mortgage can sometimes be used to fund the purchase of a second property and might be useful if:

• You have a large amount of equity in your primary residence.

• You don’t want to remortgage your current deal.

• You’re looking for flexibility or want to raise funds quickly.

Here’s a quick summary of the pros and cons if you’re comparing second home mortgages with second charge mortgages:

Why choose Teito for your second home mortgage?

Our brokers specialise in helping people secure mortgages for second homes, even if your circumstances fall outside standard mainstream lending criteria. Whether you're buying a holiday home, a weekday city flat, or simply want a change of scenery, we can match you with flexible lenders offering competitive rates.

Because our brokers have plenty of experience working with second home buyers, they understand which lenders are most likely to approve your application and the best way to present your circumstances to maximise your chances of success.

Here are some more of the reasons people choose us when applying for a second home mortgage:

• Our brokers specialise in complex and multi-property applications

• Your first chat is free with no obligation to proceed

• We have 5-star ratings on leading review sites

• Access to niche second home mortgage lenders with exclusive rates

Ready to take advantage of a free, no-obligation chat with a broker who specialises in second home mortgages? Get started here.