What type of mortgage for second home? No other mortgage.

palmeralan

If I have already paid off main home and am looking to buy another house as a holiday home. Is it just a normal mortgage? I know I have the stamp duty to pay but as far as the mortgage I didnt think iit should be specific to second home. However the lenders seem to be saying I need 25% deposit (I have around 15). I thought this would be the case only if I had another mortgage which I don't? Any pointers

Thank you

foxy-stoat

Speak to a broker - you should be able to pull equity out of your current property, subject to your current salary, maybe speak to an accountant. Have you drawn up a business plan for this new venture?

MortgageMamma

Are you intending to let out the holiday home or just use it for yourself? Is it a traditional property or is it on a complex?

If you are letting it out - you need a buy to let mortgage for a holiday let, you will need 25% deposit...You also need to provide rental estimates for low, mid and high season which you can usually get if its been a holiday let before, or if you enquire with a bigger company that does such lets like hoseasons.

If it is for your sole use things are simpler as long as you can afford to run both properties and this must be evidenced to the lender and fit their affordability calculations. You can get away with a smaller deposit using this route but you would not be able to let it out.

Air BNB lets are a different matter all together.

palmeralan

Not buy to let, only for me. Wont be letting out. Sole use. Don't want equity taken from main home.the mortgage. I paid the last mortgage off with my salary alone. Wife didn't need pay input. Payments on this one will be half of the previous one which was paid off a month ago. Affordability shouldn't be issue.Ill maybe go to branches to see if I can get a face to talk to rather than phone or internet.

foxy-stoat

palmeralan wrote: »

Not buy to let, only for me. Wont be letting out. Sole use. Don't want equity taken from main home.the mortgage. I paid the last mortgage off with my salary alone. Wife didn't need pay input. Payments on this one will be half of the previous one which was paid off a month ago. Affordability shouldn't be issue.Ill maybe go to branches to see if I can get a face to talk to rather than phone or internet.

Speak to a broker then if the lenders you have tried are wanting minimum 25% deposit.

MortgageMamma

All lenders have different criteria for second homes - you have to ensure that you are able it meet it. Who is your lender, I will check for you.