2nd home in cash, mortgage remains on primary residence. What are the implications?

abfabally

Good morning! I am in the UK. I own my primary residence with a mortgage of £100,000. I plan to buy a second home in cash, with no mortgage. When my 5 year fixed rate mortgage deal ends on my primary residence, am I forced to get a  'second home' mortgage for it because I have 2 houses, or I can keep getting a 'normal' mortgage for my primary residence?

I understand mortgages for 2nd homes have higher rates....

Thanks!!

grumpy_codger

abfabally said:

I understand mortgages for 2nd homes have higher rates....

Why do you think so? A second mortgage can have a higher rate because your outgoings get higher and hence the lender's risk. 

Also, the Stamp Duty is higher (you can claim the excess back if you sell the old house within 3 years). And so is the council tax in many (most?) areas unless you rent it out.

MWT

abfabally said:

Good morning! I am in the UK. I own my primary residence with a mortgage of £100,000. I plan to buy a second home in cash, with no mortgage. When my 5 year fixed rate mortgage deal ends on my primary residence, am I forced to get a  'second home' mortgage for it because I have 2 houses, or I can keep getting a 'normal' mortgage for my primary residence?

The mortgage you have remains unchanged.

When your current fix gets close to the end you will be able to see the options you have for a new fix from your current lender and you will just pick one of those.

It isn't a new mortgage, just the same mortgage with a new fix...