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If you are looking for a mortgage for a second home, there are a number of different financing options available.
If you own your home outright without a mortgage or have a large amount of equity available, you may be able to release equity, and using the capital raised to either buy a second property outright or put down a larger deposit, allowing you to qualify for a better mortgage rate.
Some lenders may offer a residential mortgage for the second property if you intend to split your time between the two homes, however lending is likely to be restricted to 75% of the property value, and affordability assessments for the mortgage application may also be quite strict.
If you intend to let the second property out, you should apply for a buy to let mortgage. This type of financing may also be suitable for a holiday home that you want to let out for most of the year, but use yourself at certain times. Lenders normally stipulate that your total rental income for the year must be at least 125% of the mortgage payments calculated at a set determined rate. A handful of lenders also offer “holiday let mortgages” specifically designed for this scenario.
By dealing with Just Mortgage Brokers you can be confident that your enquiries will be handled by mortgage experts who have the experience to provide you with helpful second properties mortgage advice tailored to your own unique circumstances – contact us today.