capitalfortune

Call us today to speak to an expert

0207 7 100 400

Capital Fortune is a national and
award winning mortgage, buy-to-let
and insurance broker.

Call today to speak to an expert

0207 7 100 400

REQUEST A CALLBACK
Image
As Featured
Our customers have rated our service
Feefo logoIndependant User Feedback Feefo logo98%
Customer - Buy to let residential
Very good service, totally professional and fast! Their understanding of the business make it pleasure to deal with them, simply, no nonsense and a ...Read More

Second Mortgage

When buying a second home, the same principles apply as when you apply for a mortgage for your first home. You will need to be able to show the lender that you can afford to repay the mortgage monthly and this will affect how much you can borrow.

Many people who want to buy a second home, typically for family holidays in the UK, have a decent amount of equity built up in their first home. This can provide you with a choice about how to pay for the new property.

Image

What Our Customers Say

Grant Porter - BTL Remo
I have used Capital Fortune many times over the years and they are absolutely excellent. Such good and reliable advise - if they can help they say that. If they can’t, they say that too.. I have recommend to ...Read More
1 months, 1 day ago

Nimisha Kurup - Purchase
James and team are amazing . This is the 2nd time James and team have supported in what can be a very unclear model The service and attention to the requirements is very professional and empathetic. James tailors to the need ...Read More
1 months, 8 days ago

Colleen Domeney - Residential Purchase
When planning our relocation back to the UK after 38-years we carefully researched companies that could advise and assist on securing UK mortgages. Capital Fortune was highly rated, and after a brief introductory call we were confident that we had ...Read More
1 months, 13 days ago

Customer - Residential Purchase
I two individuals who were incredibly supportive and went above and beyond in my opinion to ensure that I got a mortgage in place. I can’t recommend this company enough. ...Read More
1 months, 14 days ago

Find out more

Before you buy, you'll need to work out which property will be your main residence and provide a mortgage lender with evidence for this. This is because when you come to sell property, capital gains tax is due on it unless the property is your main home.

You'll also need to factor in purchase costs, which are higher on a second home than a first home. In April 2016, the government introduced a new stamp duty charge for those buying a second home. The usual stamp duty applies, but there is now an additional 3 per cent to pay if you are buying a second home. You'll have to pay this 3 per cent even if the property you're buying comes in under the £125,000 threshold.

There's also the usual legal, valuation and mortgage fees to pay.

Image

Mortgage lenders tend to want to see that you have a minimum of 20 per cent to put in as a deposit. It's possible to provide this in cash but you could look at taking some equity out of your main home to provide the deposit for your second home.

This would be achieved either by remortgaging your loan on your main home or by taking a further advance against your main home. This can then be put down as a deposit on the second home you are planning to purchase and you can apply for a mortgage on this property too.

Image

It's important to be sure that you can afford to repay both mortgages out of your income. Lenders will want to see evidence that you will be able to meet repayments comfortably, so if you're already stretched paying your first mortgage, then it's unlikely you'll get a second one.

Image

If you do decide to remortgage to release some money to buy a second home, it's a good idea to do this through the same mortgage broker you use to arrange the mortgage on the second home. Increasing the amount you pay on your first mortgage will affect what you are able to borrow on your second.

Find Out Current Rates

YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE

Think carefully about securing other debts against your home. Your home or property may be repossessed if you do not keep up repayments on your mortgage or any other debts secured on it.

Commercial Mortgages and some forms of Part Commercial & Buy to Let mortgages are not regulated.

Image

Get competitive rate mortgages

Award-winning
Mortgage Advisers

Fast Decisions

National Coverage

Holistic Approach

Comprehensive Panel

Direct Access to Underwriters

no obligation quotes

Get a quote for these services

No Sale, No Fee, Fixed Price

Low Cost, National Coverage

Instant Online Quotes