Should I Remortgage My Second Home?

18 Jun 2019

Yes, as long as you agree with the terms and conditions guiding such deals. Before opting in for this decision, make sure you discuss with your mortgage advisor to know how they feel about it.

As a mortgage advisor for many years, deciding to remortgage second homes is one of the questions I have to deal with daily. Most clients who visit us will like to know if it is okay to remortgage their second homes, buy to let remortgage comparison find the remortgage deals for their second homes. In this article, we provide the best answer to the question; should I remortgage my second home? Please note, the answer in this article is based on my experience in the UK mortgage market and dealing with several second home remortgaging deals.

What is a second home?

A second home mortgage can be described as the mortgage for purchasing a second home and should not be confused with second charge mortgages or getting a remortgage. This mortgage move comes in handy for people who want to purchase another home when already paying off a mortgage. During this time, your financial institution or mortgage providers will view your current mortgage deal as paying for your main home or residence while viewing the second mortgage as a second home.

As long as you already have an active mortgage and you wish to purchase another one, your application will be treated as a second home mortgage. Before moving on to purchase another home when you already have an active mortgage, it is important that you check with your mortgage provider to be sure they offer the services you are interested in. After contacting them, they will put you through their best remortgage deals including the terms and conditions guiding such deals. Please note that most second home mortgages tend to face strict criteria for application and may require adequate knowledge of the real estate business to pull it through.

How can I get a second home mortgage?

To get a second home mortgage, you will need the following items

  1. A larger deposit than what you already have for your first home mortgage
     
  2. Financial assessment during which the mortgage provider will be extra cautious about lending to you since it will be a very expensive decision paying for two separate mortgages monthly. A failure to pay for both homes will lead to the two properties being repossessed by the lender although there are cases of equity where you may be able to sell one of them and settle the mortgages in full.

Once you meet the criteria stated above, your application for a second home mortgage will be granted without delay.

Conclusion

Remortgaging your second home may put you at risk of losing both properties if you fail to meet the terms and conditions of the contract. Get your cards right, consult with your mortgage advisor, and set the ball rolling. contact us on how you can get your mortgage loans approved. We will love to hear from you.