Compare second home mortgages for any new home or buy to let property. Quote Goat have partnered with Mojo Mortgages to help you compare mortgage rates across all UK lenders so you can find a competitive mortgage offer for your second home, holiday home or any buy to let properties.
What is a second home mortgage?
Where a regular mortgage is based around the use of the home as your regular residence, if you decide to buy a second property you may need a mortgage that reflects the fact that you won’t be using it as your main home.
If you decide to buy a second home, for whatever reason, your second home mortgage will normally be secured against your second property in the same way that your first mortgage is secured against your first home.
Is a second home mortgage the same as a second charge mortgage?
Second charge mortgages require you to take out a second mortgage but these are different from second home, or second property mortgages. This is because a second charge mortgage doesn’t require you to purchase a property whilst a second home mortgage is for this express purpose.
How do you get a second home mortgage?
Taking out a second mortgage requires a certain amount of monthly expenditure. This is the first thing lenders will consider when judging whether you are eligible.
Lenders take into consideration payment history on your current mortgage repayments, that you meet their affordability criteria and what you will be using your second home mortgage for.
If you are purchasing a property as a second home then lenders will need to be assured that you can pay monthly payments on both your current home and the new property; if you are using the property as a buy to let then they will also take into account your earnings based on the rental income rather than solely on your own income.
Most lenders will require a rental income to cover 125% of the mortgage payments.
How much deposit do I need for a second home mortgage?
The amount you will have to pay as a deposit for your second home mortgage will differ by lender but the amount will also depend on what you are using the property for.
Most second home mortgages tend to require a 15% deposit as a minimum requirement but typically speaking the larger deposit, the better the rates you can unlock and the more likely you are to be approved for the mortgage.
Buy to let properties tend to require a larger deposit of around 25% as a minimum. Some may be available with lower deposits but the interest rates throughout the repayments are likely to be considerably higher.
Compare second home mortgages
If you already have a mortgage on your home but are looking to buy another property as a second home, holiday home or are investing in a buy to let property you can compare second home mortgage offers across all UK lenders by clicking the compare button below. You’ll be taken to our partners at Mojo Mortgages, a fee-free online mortgage broker service, who can help you check eligibility, guide you through the application process and compare rates from across all lenders.