Remortgage For A Second Home
- You'll experience exceptional customer service
- We are an independently owned brokerage offering first charge mortgages from the whole of the market.
- You can contact us 24/7, we're always available to help
Whats on this page
As Featured In . . .
Remortgage For A Second Home
Rosie Harper talks to us about remortgaging to buy a second home.
Podcast approved by The Openwork Partnership on 08/11/2024.
Can I remortgage to buy a second home?
Yes, you can. Buying a second home as an investment, or planning to rent your current home to buy an onward purchase, are both common reasons to refinance your existing property.
There’s no reason why the equity you’ve built up in your current home can’t be used to get another.
Is it worth remortgaging to buy another property?
Remortgaging is one of the most cost-effective ways to raise capital to buy a new property. Remortgaging your current home can help unlock its value and give you a cash sum to use as part or all of your deposit to finance a new home.
But be aware that borrowing more means higher monthly commitments. Planning and budgeting are essential to ensure you cover extra expenses. But with caution, remortgaging for a new mortgage can be successful.
What do they ask when you remortgage for a second home?
You have to tell us the reason for the second home. This helps us select the right mortgage product for you, and that reason will be taken into account by lenders to determine your viability. For example, will the property be for personal use only, or let out on short term basis? This could influence which lender would be most suitable.
How much deposit do I need for a second home?
You’ll usually need a deposit of at least 15% – or 25% if you plan to rent that property out.
Speak To An Expert
Our highly experienced Advisers are ready to help you with either buying or remortgaging a home, protecting your property and lifestyle along with saving you time and effort, ensuring you have a competitive deal right for you.
Is it a good idea to release equity to buy another property?
It can be, but releasing equity in your property to buy another can potentially lead to higher monthly payments. You will need to pass affordability checks to ensure your current income can comfortably handle these increased costs, as well as factoring in remortgage fees.
What tax do you pay when buying a second property?
Stamp duty is the only tax you pay on a second home at the time of purchase. Any other taxes you pay on a second property will depend on what you use the property for, and if you sell that property.
What are the disadvantages of owning a second home in the UK?
It’s mainly about the additional costs. You will need to pay a higher rate of stamp duty, plus council tax and mortgage interest rates. You might need to pay for maintenance, repairs and letting fees if you plan to let the property out.
You will require a special mortgage if it’s a Buy to Let, interest rates are usually a little bit higher, and you could have Capital Gains Tax to pay when you sell.
How much stamp duty would I pay on a second home?
It depends on the cost of the property. You will have to pay the standard rate plus the stamp duty surcharge of 3%, and that goes up on each price banding to a maximum rate of 15%.
Do I have to declare a second home?
Yes, you do. Whether you bought a second home or inherited a second home, you are liable for paying extra tax on it.
How can a mortgage broker help here? Have you got anything else to add?
We can help you find a deal on a purchase or sale, and we can also help you find the right type of finance for your needs. We can help you negotiate terms to get the right price for you, and ensure that the transaction runs smoothly by corresponding with solicitors and agents.
As we’ve discussed, purchasing a second property can be complex, and this is where our expert advice and guidance comes in. We can help you navigate through the process. But don’t just take my word for it. If you follow Martin Lewis, he’ll always recommend speaking to your broker.
Approved by The Openwork Partnership on 08/11/2024
THINK CAREFULLY BEFORE SECURING OTHER DEBTS AGAINST YOUR PROPERTY.
YOUR PROPERTY MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE.
MOST BUY TO LET MORTGAGES ARE NOT REGULATED BY THE FINANCIAL CONDUCT
YOU MAY HAVE TO PAY AN EARLY REPAYMENT CHARGE TO YOUR EXISTING LENDER IF YOU REMORTGAGE.
Useful Remortgage Links
Why Yellow Brick Mortgages
- Exceptional customer service
- We are an independently owned brokerage offering first charge mortgages from the whole of the market.
- Available 24/7 to ensure we are there to help when you need us.
