Remortgage for a second home
If you want to buy a property to use as a holiday house or a second home, but do not have the necessary lump sum required upfront, then a remortgage for a second home could be an option worth your consideration. Through a remortgage, you may be able to use a portion of the equity that you have amassed in your current property to raise a deposit for your second property.
In principle there’s nothing to stop you getting hold of a remortgage to fund the purchase of a second home. Provided that you meet your chosen mortgage provider’s standard criteria and affordability checks, remortgaging to raise money for a second home purchase can be a real possibility. In spite of the fact that not every bank will offer mortgages on second properties, you ought to still find some good rates
Getting a remortgage for a second home
Your bank will need to know that the capital you want to raise is going to be utilized to purchase a private second home or holiday home, rather than a buy to let property. This is due to the fact that remortgages for capital raising can’t be utilised for certain things, one of which is buy to let ventures. To get a second home remortgage, you will have to show the mortgage provider that you have enough income to pay for this mortgage as well as the one you already have, so don’t forget to factor valuation and legal fees into your projected remortgaging costs.
In the event that you have sufficient value in your first property, you may have the capacity to remortgage this property and put the money raised to use in purchasing a second property. For instance, if your first property has a value of £500,000 and your mortgage is £100,000, you’ll have £400,000 equity to potentially use to raise capital, and pay for your second home deposit.
To find out more about remortgages for second homes, call our dedicated mortgage team on 0117 332 3389.
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