Yes, you can mortgage a second home in the UK, and there are two different ways to do it: through a residential mortgage, for you or your family to use as a second main residence or a holiday home, or through a buy-to-let mortgage, if you plan to rent the property out to a paying tenant. This guide focuses on the first route, a second residential mortgage, including deposit requirements, how it affects your borrowing power, and typical costs. There's a short section on the buy-to-let route at the end.
Key takeaway: A second residential mortgage usually needs a bigger deposit than your main home did, commonly 15-25% with most high street lenders. A smaller number of lenders will consider a deposit of 5-10%, so it's worth having a broker check the whole market rather than assuming the higher figure applies to you.
[[stats: From 5% = Minimum deposit available with the right lender | 5% = Additional stamp duty surcharge on second homes | 90+ = Lenders compared, whole of market]]
Can I get a mortgage on a second home?
Yes. There are two routes into owning a second property with a mortgage. A residential mortgage is used when you or an immediate family member will actually live in the property, whether that's as a genuine second main residence, a holiday home you use yourself, or somewhere for a family member to live. A buy-to-let mortgage is used instead when the intention is to let the property to a paying third party. Lenders treat the two very differently, so it's important to be clear from the outset which route fits your plans, since applying under the wrong one can cause problems with your mortgage offer later.
Why is a second residential mortgage trickier to get?
Buying a second home on a residential basis can be more difficult than your first purchase, mainly because most lenders ask for a larger deposit. Where a first residential mortgage might be available from as little as 5%, most mainstream lenders expect somewhere between 15% and 25% for a second home. There are exceptions, including a small number of lenders willing to accept a deposit as low as 5-10%, which we've highlighted further on in this guide.
Does buying a second home affect how much I can borrow?
Yes and no. It comes down to your income and your outgoings. When you apply for a second residential mortgage, the lender needs to be confident you could comfortably afford both properties' running costs at the same time, not just the new one. Where a standard residential application only has to account for one set of household bills and one mortgage payment, a second home application is normally assessed against two sets of bills and two mortgages, unless your existing property is owned outright with no mortgage remaining.
How much this affects you in practice varies by lender, since each one has its own tolerance for existing outgoings. Your income level, your existing debts and your credit score will all play a part in how much you're able to borrow.
{{primary_cta}}
What deposit will I need for a second home?
Deposit requirements for a second residential mortgage vary considerably between lenders. Here's an overview of typical requirements from a selection of mainstream lenders.
[[table: Lender | Minimum deposit | Good to know ;; Halifax | 25% | Allows the property to be let out for up to 4 months of the year ;; Santander | 20% | - ;; HSBC | 20% | - ;; TSB | 25% | - ;; Nationwide | 15% | - ;; Metro Bank | 15% | - ;; Virgin Money | 25% | - ;; Coventry Building Society | Not currently accepted | Does not currently accept second home applications ;; Accord Mortgages | Not currently accepted | Does not currently accept second home applications]]
Lenders with lower deposit requirements
A smaller number of lenders will consider a much lower deposit for a second residential mortgage, which can make a real difference if you don't want to tie up as much cash in a second property.
[[table: Lender | Minimum deposit | Good to know ;; Barclays | 10% | The deposit must come from your own savings; gifted deposits aren't accepted ;; NatWest | 5% | If your existing mortgage is also with NatWest, the average loan to value across both properties can't exceed 90% ;; Cambridge Building Society | 5% | -]]
Good to know: Lender criteria on second homes change fairly often, and not every lender publishes a fixed policy. A mortgage broker at Quanstrom Financial can check current criteria across the whole market for your specific circumstances, rather than you having to approach each lender individually.
What does it cost to buy a second home?
Alongside your deposit, which can be as low as 5% with the right lender, you'll need to budget for a few other costs when buying a second home.
Stamp duty
Because this would be an additional property, you'd normally be liable for the standard stamp duty rates plus a 5 percentage point surcharge on the whole purchase price, rather than the rates a first-time buyer or a home mover pays on their only property.
Legal fees
Legal fees for a typical straightforward freehold purchase generally run to around £2,000-£2,500 in total, though this can vary depending on the property and your solicitor.
Survey costs
Survey costs are typically around £500-£1,000, depending on which type of survey you go for. Take a look at our guide to survey types to see which one suits your property.
[[calc:stampduty]]
Do I have to pay the extra stamp duty surcharge?
Not always. If you're buying the second home for a relative to live in, for example for a child at university or a family member who isn't able to borrow enough to buy the property themselves, a Joint Borrower Sole Proprietor mortgage may be worth considering. This lets you become a joint mortgage holder without being named on the property's deeds, which can mean the additional stamp duty surcharge doesn't apply. Stamp duty is a tax matter, so it's worth confirming your own position with a solicitor or tax adviser, alongside speaking to a mortgage broker at Quanstrom Financial about whether a JBSP mortgage suits your situation.
What about buying a second home to rent out?
If your plan is to let the property to a paying tenant rather than use it yourself or house a family member, you'll need a buy-to-let mortgage rather than a residential one. Buy-to-let lending works differently: affordability is generally assessed on the rental income the property could achieve rather than your personal income alone, deposit requirements are typically higher, often from around 20-25%, and the tax treatment of a buy-to-let property differs from a residential one. If letting is the plan, it's worth exploring this route from the outset rather than applying on a residential basis. Take a look at our buy-to-let mortgage page for more detail, or speak to a mortgage broker at Quanstrom Financial about which route fits your plans.
Frequently asked questions
Can I have two residential mortgages at once?
Yes, it's possible to hold two residential mortgages at the same time, provided a lender is satisfied you can afford both. Lenders will look closely at your income, your existing debts and the running costs of both properties before agreeing to a second residential mortgage.
How much deposit do I need for a second home?
Most mainstream lenders ask for somewhere between 15% and 25% for a second residential mortgage, though a smaller number of lenders will consider a deposit of 5-10%. A mortgage broker at Quanstrom Financial can help identify which lenders suit your deposit level.
Do I have to pay stamp duty on a second home?
In most cases, yes. Buying a second property usually means paying the standard stamp duty rates plus a 5 percentage point surcharge, though certain arrangements, such as a Joint Borrower Sole Proprietor mortgage for a family member, may mean the surcharge doesn't apply. It's worth checking your specific position with a solicitor or tax adviser.
Is it harder to get a mortgage on a second home than a first home?
It can be, mainly because of the larger deposit most lenders expect and the fact that affordability is assessed against two sets of household costs rather than one. It isn't impossible though, and a whole-of-market broker can help you find lenders who are comfortable with second home applications.
Can I rent out my second home occasionally?
Some lenders allow limited letting on a residential second home mortgage. Halifax, for example, currently allows the property to be let out for up to 4 months of the year. Rules like this vary significantly by lender, so it's worth checking before assuming you can let the property out at all.
What's the difference between a second home mortgage and a buy-to-let mortgage?
A second home mortgage is a residential product, used when you or a family member will live in the property. A buy-to-let mortgage is used when you intend to let the property to a paying tenant, and works differently: affordability is generally based on the property's rental income, deposits are typically higher, and the product is assessed and taxed differently to a residential mortgage.
Can I buy a second home without selling my first?
Yes, provided a lender is satisfied you can afford both mortgages simultaneously. This is different to a home mover application, where your existing property is normally being sold as part of the transaction.
Is a holiday let mortgage the same as a second home mortgage?
Not quite. A second residential mortgage is for a property you or your family will use yourselves. If you plan to let the property out commercially, for example as a short-term holiday let for paying guests rather than occasional personal use, this usually needs a specialist holiday let mortgage, a different product again with its own criteria.
Written by Toby Quanstrom CeMAP, Director at Quanstrom Financial, a whole-of-market mortgage broker based in Eastbourne, East Sussex.
Your home may be repossessed if you do not keep up repayments on your mortgage.
.svg)