What is the minimum % deposit I need for a second property?

LiveOnce · 17 January 2017 at 10:19PM

> I will not be renting this property out.
> It will be my second home.

I have heard 25% deposit being banded around as a minimum but this feels like quite a lot.

So percentage wise what is the minimum deposit I need?

Let's say I wanted to buy a property no more than £200,000 in theory I need £50,000 deposit at 25%.

But it feels like I can pay the mortgage still at £25k deposit and doing a 25yr mortgage based on my income AND taking into account current home spend.

So how do I explore this? 25% deposit seems quite steep.

da_rule · 17 January 2017 at 10:34PM

http://www.money.co.uk/mortgages/second-home-mortgages.htm

A list of some of the second home mortgages available. As you will see, most have a maximum LTV of 65-75% (so needing a 25-35% deposit).

Don't forget you'll also be paying the new higher rate of stamp duty.

You'll also need to check insurance policies and mortgage policies for information on how long you can leave the property empty for etc.

silvercar · 17 January 2017 at 11:53PM

One option would be to increase the mortgage on your main home, to fund the deposit on the second home. Assuming there is equity in your main home.

LiveOnce · 18 January 2017 at 12:07AM

Hi silvercar, What do you mean by increase mortgage on your main home please? I do not understand

da_rule · 18 January 2017 at 8:12AM

What I assume he meant was, assuming you have a mortgage against the property you live in now, see if you can borrow more from them to increase your deposit amount for your second home.

Maximum100 · 21 January 2017 at 9:01PM

What is the difference between what you mentioned above and remortgaging?

I'm looking into buying first time, so usual to know different aspects and mortgage jargon..Thank you

amnblog · 21 January 2017 at 9:16PM

The above posts are wrong. There are Lenders that will do second home mortgages with 15% deposit.

glosoli · 21 January 2017 at 9:49PM

I know some lenders who will actually do a 90% application for a second home, as long as it is the only residential mortgage you have with them. If you had a first residential mortgage with them, then the subsequent falls to 80%.