Second home mortgages
Buying an additional property? You’ll need a second home mortgage.
There’s often stricter criteria and checks involved when getting a second mortgage, so it’s well worth speaking with a mortgage broker to help you navigate the process.
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Last reviewed by John Fraser-Tucker on 12th June 2025
What is a second home mortgage?
A second home mortgage is an additional mortgage taken out when buying another residential property. It runs separately to any existing mortgage you might have.
In the UK, about 3% of households own a second property. That’s true for our customers too, with 3% of home buyers looking for a mortgage on an additional property in the last 12 months*.
People typically use second home mortgages for all sorts of exciting property purchases, including:
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A second property - perhaps somewhere closer to family or a more convenient location for your daily commute
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A holiday home
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A property for a family member
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A renovation project, which you might eventually move into or sell for a (hopefully) tidy profit
Taking on two (or more) mortgages at the same time is a big responsibility. Lenders need to make sure that you’ll be able to afford the additional deposit and both sets of mortgage repayments, alongside all your other expenses and living costs.
That means you’ll need to go through stringent affordability checks, to prove you’re able to handle the additional commitment. So, before you dive in, make sure you’ve worked out your budget carefully!
“Each lender has their own criteria. For example, some will allow you to buy a holiday home while others will only lend if the property is solely for yourself or family members to live in. It’s important to speak with a broker early on in the process. We’ll help you compare second home mortgages and match you with the most suitable lender.”
Stuart Bowman, Mortgage Expert
A second home mortgage isn’t:
A second charge mortgage is a type of secured loan which allows you to borrow money against the equity you’ve built up in your current home. It's a way to borrow extra money, usually on top of your existing mortgage, but it doesn't mean you're buying a whole new property.
When you remortgage, you switch to a new mortgage but keep the same property. You may be able to remortgage your current home to free up some cash to use as a deposit for a second property. Just remember, doing this will reduce the equity in your first home.
If your plan is to buy a property specifically to rent out to tenants, or if your dreamy holiday home will be rented out for most of the year, then you need to look for a buy-to-let mortgage instead.
Second home mortgages versus buy-to-let mortgages
A second home mortgage is generally for properties intended mainly for personal use (such as a holiday spot for yourself and your family), whereas a buy-to-let mortgage is specifically for properties that’ll be rented out on a long-term basis.
| Second home mortgage | Buy-to-let mortgage |
|---|---|---|
Use of the home | The property should be for personal use, such as a holiday home or family residence | The property is used to rent out for profit |
Usage limitations | You generally won’t be able to rent out the property for more than four months a year - and some lenders prohibit the use of platforms like Airbnb entirely | You’ll be able to rent out the property on a long-term basis, but won’t be able to live in the property yourself |
Deposit | You’ll need to put down a deposit of around 15%-25% | You’ll usually need to put down a deposit of 25% or more |
Mortgage type | Usually repayment, where you pay both the loan amount and the interest in monthly instalments | Usually interest-only. Your payments will only cover the interest, but you’ll owe the full amount borrowed at the end of your mortgage. |
Interest rates | Potentially higher than your first residential mortgage | Usually higher than residential mortgages |
Affordability requirements | Based on personal income | Based also on rental income (lenders usually want the rental income to cover at least 125% of your monthly mortgage payments) |
Regulation | Regulated by the Financial Conduct Authority | Generally not regulated by the Financial Conduct Authority |
Additional costs to consider | You’ll pay an additional surcharge on top of usual stamp duty rates, Capital Gains Tax on any profit made when you sell the profit, and you’ll also need to pay income tax on any rental income | You’ll pay an additional surcharge on top of usual stamp duty rates, Capital Gains Tax on any profit made when you sell the profit, and you’ll also need to pay income tax on any rental income |
What deposit will I need for a second home mortgage?
You’ll need a slightly bigger deposit for a second home mortgage, usually between 15% to 25% of the property value depending on the lender.
As with any mortgage, the more deposit you can put down, the better. You’ll likely be able to access a wider range of products and more competitive interest rates if you can lower your loan-to-value.
Will I pay more interest on a second mortgage?
Interest rates for second home mortgages are likely to be higher compared to your primary mortgage. That’s because, in a tight financial spot, most people are likely to prioritise paying the mortgage on their main home. This makes second home mortgages a greater risk for lenders.
The interest rate you’re personally offered will depend on lots of different factors, though, including:
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Your personal circumstances and overall affordability
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Income reliability and employment stability
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Your credit history
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Your deposit size and loan-to-value
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The type of property you want to buy
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The specific type of mortgage you’re looking for
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The lender’s own criteria
Costs and considerations when getting a second property mortgage
Second home mortgages FAQs
Buying a second home works in a similar way to when you first bought a property.
Research phase: Get a mortgage in principle to find out how much you might be able to borrow when buying a second home. Once you know your property buying budget, you can start your house hunt and put an offer in.
Apply for a mortgage: Use a mortgage broker to help you compare second home mortgage deals. Once you’ve found the right lender for you, prepare and submit a formal mortgage application.
Get your mortgage offer: Your lender will conduct their affordability and credit checks, as well as complete a property valuation. If they’re happy with everything, you’ll receive a formal mortgage offer.
Completion: Your solicitor or conveyancer will conduct their legal work behind-the-scenes. Once all checks are done and the funds are transferred, you’ll legally own the property.
Generally, yes, getting a second mortgage is a bit more challenging.
You’ll likely be subject to more stringent financial checks as your lender will want to ensure you’re able to cover both mortgage payments comfortably. You’ll typically need a strong credit history, stable income, low levels of existing debt and a larger deposit to qualify.
There are no strict rules on the number of mortgages you can have, as each lender will set their own limit.
While you can have more than one residential mortgage, lenders are likely to scrutinise the purpose of each property and your ability to afford several personal residences. Therefore, it’s unlikely that an individual would have more than two residential mortgages.
It’s much more common for individuals to have multiple buy-to-let mortgages, particularly portfolio landlords.
Yes, it’s possible to use equity from your first home for a deposit on another property. This is most commonly done by remortgaging your existing home to release the money you need.
To find out how much equity is in your home, deduct the remaining amount left on your mortgage from your property’s current value.
Yes, it is possible. However, your existing mortgage on your first home may need to be converted to a buy-to-let mortgage. You’ll also be responsible for becoming a landlord, which comes with legal responsibilities and potential tax implications, so make sure you’re prepared for this new commitment.
If you’re keen to help a family member get on the property ladder, buying a second home with a new mortgage might not always be the right choice for you.
There are several other options that allow you to help your loved ones without committing to buying a second home yourself:
Gifted deposits: You can provide a sum of money as a gift for their deposit.
Guarantor mortgages: You agree to cover your loved ones’ mortgage payments if they default on their repayments.
Family-assisted mortgages: These specific mortgage products allow you to help secure a loan for a loved one, often by linking your savings or home equity as security.
Joint Borrower, Sole Proprietor (JBSP) mortgages: You jointly apply for the mortgage with a family member but only they are on the property's title deeds.
Some of these options are still a big financial commitment, though, and as such need to be considered extremely carefully. Chatting to a mortgage broker can help you to work out which option is right for you.
*Data shown is from Mojo Mortgages' own customer records, covering the period from 1st June 2024 to 31st May 2025