What type of mortgage do you need for a second home?

(6 Posts)
Girlwithnotattoos Thu 13-Oct-16 20:35:59

We are thinking of buying s second home to use for holidays. We have roughly 40% of the asking price to use as a deposit but would need a loan or mortgage to cover the balance. We don't plan to let it out and it would only be used by us and maybe the immediate family, so no regular income. We would have no problem getting a mortgage based on our incomes so could we have a regular mortgage or would it need to be a buy to let?

MooseyMouse Fri 14-Oct-16 05:11:10

Apparently there are very few second-home mortgages at the moment. Could you refinance your main home to pay for the second home outright?

I can recommend these mortgage advisors (all over the phone and not tied to anyone)...

www.one77fs.co.uk

TheCrowFromBelow Fri 14-Oct-16 07:00:41

You need to speak to a good IFA as they will have access to specialist deals, I think it makes difference if you already have a mortgage but an IFA is your best bet.

neily12 Fri 14-Oct-16 09:25:42

Hi, as you're not letting this property out, you don't need to worry about a buy-to-let or commercial mortgage.

You should apply for a standard mortgage but you'll need to be able to show you can afford both your main and second homes through your income.

It's worth contacting an IFA, ideally a fee-free one like L&C, as they'll have an idea on lenders more likely to support your particular needs.

thenewaveragebear1983 Fri 14-Oct-16 17:35:45

You will need to pay the full 3% stamp duty on the whole purchase price if it is your second property - just a cost to factor in.

Girlwithnotattoos Fri 14-Oct-16 21:06:27

Thanks for responses, we could raise the finance through mortgaging our main home although we would rather not. A regular mortgage would be no problem in terms of affordability so it's good to know we could do that if need be. I know about the stamp duty, that's a lot of extra cash to stump up. At the moment we're just toying with the idea, lots to think about.

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