Mortgage For Second Home.
Most people have one home and one mortgage on their property. However sometime there might be need to find a second home mortgage. There are a few circumstance that might require a mortgage on a second home, one could be to buy a property for a dependent relative such as elderly parents or grown up children. Another could be if you require a second property to stay in if you work away from home.
All of the above scenarios are valid reasons for needing a mortgage on a second property. One thing I should pint out at this stage is do not confuse second home mortgages with Buy to Let. They are two entirely different things. Buy to Let is designed for property that you intend to let out to anon family member only. Owning a second property for your own or your family’s use is just that, it is not to be used as a way of letting property. If you need advice on Buy to Lets have a look here
Back to second homes, so now that you know there is an option to get a second property, what is the criteria for this? Well there are lenders willing to lend on a second property as long as your income is sufficient to cover any existing mortgage and any new second mortgage. The property as discussed above can only be for your own use or that of a dependent regulative e.g. Father, Mother or Children. There are restrictions on the loan to value that you can borrow at, in most cases the maximum lending will be 85% for a second property, so you will need have at least 15% deposit available.
If you are considering buying a second property for yourself or a dependent relative, please get in touch and we can discuss in more detail what options and deals are available. Our Mortgage Advisers will be able to answer any questions you may have and assist you in finding a suitable mortgage deal for your second house purchase.
Michael Markey CeMap, CeRER
