How second home mortgages work
A second home you'll use yourself (not let out) is assessed on your personal income and affordability, like a residential mortgage — but you must afford both mortgages, and extra stamp duty applies. The best second home mortgage is one from a lender comfortable with the purpose at a deposit and affordability level you meet.
1. Standard residential second home mortgages
Most lenders offer second home mortgages assessed on your income, covering both properties. Best for buyers with the affordability to support two mortgages — typically needing a 15–25% deposit.
2. Holiday home mortgages (personal use)
For a holiday home you'll use yourself rather than let commercially. Best for buyers wanting a personal bolthole — distinct from a holiday let mortgage, which assesses rental income.
3. Weekday / work second home mortgages
For a base near work during the week. Best for those commuting long distances who need a second residence — assessed on affordability of both homes.
4. Higher-deposit second home mortgages
A larger deposit improves rates and affordability headroom when carrying two mortgages. Best for buyers wanting the keenest rate and comfortable monthly costs.
Key considerations
- Extra stamp duty — a higher-rate surcharge applies to additional properties
- Affordability — you must afford both mortgages
- Deposit — typically 15–25%
- Purpose — personal use (not commercial letting, which needs a holiday let mortgage)
How to find the best second home mortgage
A whole-of-market broker can find lenders comfortable with second homes and the best rate given you're carrying two mortgages. Find a mortgage broker through Nesto — free, no obligation.
Frequently asked questions
Can I get a mortgage for a second home?
Yes — assessed on your income and the affordability of both mortgages, usually needing a 15–25% deposit.
Is a second home mortgage the same as buy-to-let?
No — a second home is for your own use and assessed on your income; buy-to-let is for letting and assessed on rental income.
Do I pay extra stamp duty on a second home?
Yes — a higher-rate surcharge applies to additional properties. Factor it into your budget.
How much deposit do I need?
Typically 15–25%, depending on the lender and your affordability.
Can I let out my second home occasionally?
Not usually under a standard second home mortgage — letting requires a holiday let or buy-to-let mortgage. Check the terms.