Having a second home can have great tax benefits, but don't take this decision lightly. You'll need to have a larger deposit, a mortgage with higher interest rates, and be able to repay both mortgages at once. Speak to an expert broker at Mojo who can help you decide whether a second home mortgage is right for you.
No, anyone can apply for a second home mortgage.
You’re more likely to be approved if you:
If you get a residential second home mortgage, you'll usually need a deposit of about 15%.
If you want to rent your property out, you'll need a buy-to-let mortgage which requires a deposit of 25%. Holiday-let mortgages need an even bigger deposit of 30%.
Depending on your circumstances, some lenders may require as much as 40% deposit. It's worth speaking to an expert broker at Mojo to understand what second home mortgages are available to you.
The extra Stamp Duty charges you must pay vary depending on where the second home is located.
In England and Northern Ireland for properties over £40,000, you need to pay a second home surcharge of 3%.
In Scotland, you must pay a second home Stamp Duty surcharge of 6%.
And in Wales, the surcharge is 4%.
Yes, there's no law which caps the amount of residential mortgages you can have.
But, this is all subject to whether you can get approved from a lender and pass their affordability checks.
are a type of loan used to buy a property. The mortgage is secured against the value of the property.
are where you only pay back the interest each month. When your mortgage term comes to an end, you still owe exactly what you borrowed at the start.
aren't that different from a regular mortgage. But there are some important differences.
Uncover 2023 UK mortgage statistics. Explore mortgage market size, UK house prices, UK mortgage rates, conveyancing costs and equity release.
Discover 2023's key stats, workings, and trends in our data-focused guide to buy-to-let mortgages. Be an informed landlord with Confused.com.
See the latest stats on first-time buyer demographics and prices, and compare first-time buyer mortgages for the best deals.
The first step to getting a house is making the decision about whether it's better to rent or buy.
Here's some tips to bear in mind when you view property.
The final hurdle before the house is officially yours – swap contracts and insure the building.
Page last reviewed: 27 September 2023
Reviewed by: Claire Flynn
YOU SHOULD THINK CAREFULLY BEFORE SECURING OTHER DEBTS AGAINST YOUR HOME/PROPERTY. YOUR HOME/PROPERTY MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE.
The Financial Conduct Authority does not regulate mortgages for commercial or investment buy-to-let properties.
Confused.com is not a mortgage intermediary and makes introductions to Mojo Mortgages to provide mortgage solutions.
Confused.com and Mojo Mortgages are part of the same group of companies.Confused.com 2nd Floor, Greyfriars House, Greyfriars Road, Cardiff, CF10 3AL, United Kingdom. Confused.com is a trading name of Inspop.com Limited and is authorised and regulated by the Financial Conduct Authority. FRN 310635
Mojo is a trading style of Life's Great Limited which is registered in England and Wales (06246376). We are authorised and regulated by the Financial Conduct Authority and are on the Financial Services Register (478215). Mojo’s registered office is The Cooperage, 5 Copper Row, London, SE1 2LH, and head office is WeWork No. 1 Spinningfields, Quay Street, Manchester, M3 3JE.
To contact Mojo by phone, please call 0333 123 0012.
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