If you are buying a second property- and keeping your original home – you have two main options regarding your mortgage:
If you have enough equity in your first property then you might be able to remortgage it and release enough money to buy the second property outright.
If this isn’t the case you will need a mortgage for your second property.
What you intend to use the second property for will influence the type of mortgage you need.
If you intend to rent the property out you will need a buy to let mortgage. How much you can borrow in this case will depend on the property’s potential rental income rather than your own income. However having a sizeable deposit will make you eligible for more competitive deals.
If you are purchasing a holiday home for your own use or a home where you intend to live part of the time you will have to prove to your mortgage company that your income will cover the mortgage repayments as well as any outstanding mortgage on your principal residence (i.e. where you live most of the time).
If you are buying a property abroad you will either need to find a UK lender willing to lend on foreign properties or approach mortgage lenders in the country where you are buying.
Now that you've read this are you interested in talking to a mortgage adviser? Fill out the quick form below and you'll be contacted soon by an independent, regulated mortgage specialist for a free no obligation quote.
and £15,000 on your Mortgage
Get a custom rate and see how much you will save
by filling out the quick form below.