Can I remortgage my house to buy another property?

Types of second properties

It’s important to be upfront with your mortgage adviser about your intentions for a second property. This way, we can tailor our advice to your specific circumstances, and you can rest assured that you’ve taken the best route to becoming a second homeowner. 

Second home/holiday home

Buying a second home and having somewhere to escape to can be very beneficial. Make sure you factor in the upkeep and ongoing maintenance of the property to ensure you can comfortably afford it. 

Holiday let 

Buying a second property to rent out as a holiday let is another option. These often require a larger deposit, so remember to consider this when working out your affordability. 

Buy-to-let

Whether you’re a new landlord or want to expand your current profile, you could buy another property to rent out to tenants. 

Let-to-buy

This is where you rent out your current home to tenants, and buy another property to live in yourself. You’ll need to take out a let-to-buy mortgage on your current property, and a residential mortgage on your new home. 

Family member

If you intend to buy a second home for a friend or family member to live in, remember that it’s your name on the mortgage and you’re legally just as responsible as they are for keeping up with the repayments. Make sure you have the correct contracts drawn up and signed beforehand. 

Remortgaging to buy another property

There are various factors a lender has to take into consideration when deciding whether to lend you money to buy another property. Try out our calculator for an idea of what you could afford.

Your affordability

Releasing equity in your house to buy another one means that your repayments will be higher than they have been so far. 

You’ll have to pass affordability checks when you remortgage to be sure that you can afford the higher repayments on your current wage. It’s also important to factor in how much remortgaging will cost when deciding whether you can afford it.

Failure to meet your mortgage repayments could result in the loss of both properties, so it’s important that you’re honest with your mortgage adviser about your financial position.

Your employment status

If you’re self-employed or have a different employment status, such as a contractor or freelancer, you may have a few concerns about remortgaging. Your mortgage adviser will offer their expert opinion and guide you through the remortgage process. They'll look at your financial situation, including your current income and any outgoings, and will clearly explain your options so you can make a decision that’s right for you. In the meantime, you might want to read our article ‘How to remortgage if you’re self-employed’.

Get in touch today to find out more about remortgaging to buy a second property.