What is a second home mortgage?

A second home mortgage is for people who already own a property but want to buy another – maybe a holiday home, a fixer-upper project, a place closer to work, or a home for a family member to live in.

It's like a standard mortgage, but lenders will want to double-check that you can afford everything on top of your current home. You’ll need to cover the deposit, repayments and running costs for both properties, so make sure your budget can handle it.

If you're not planning to rent the second place out, this type of mortgage could be an option. But if you are thinking about letting it out, you’ll probably need a buy-to-let mortgage instead. Always check the rules, as using a second home for rental income without your lender’s approval could land you in hot water.

Are you eligible for a second home mortgage?

Anyone can apply for a second home mortgage providing you meet the lender’s eligibility and affordability criteria. Here’s what lenders usually want to see:

Combined income: Lenders will look at what you can afford when deciding how much to lend. Typically, you can borrow up to four and a half times your annual income, or combined annual income if arranging a joint mortgage. Some providers may offer you more, so comparing is essential.

Affordability: You'll need to demonstrate that you can comfortably afford all your mortgage payments — both on your current home and the second property — along with other financial commitments like bills and utilities.​

Loan-to-value (LTV) ratio: The maximum LTV may be lower with a second home mortgage compared to mortgages on your main residence, for example 75%. This means you'd need to provide a bigger deposit than with a typical standard mortgage.​

Property ownership limits: Some lenders limit the number of properties you can own. For instance, you might be restricted to owning no more than one residential property plus up to five additional properties, with a combined value not exceeding £3 million, but this varies between lenders.

Letting restrictions: Occasional letting might be permitted — for example, up to four months a year — but again this varies by lender.​

Occupancy by family members: Some lenders allow the second property to be occupied by relatives, even without a formal tenancy agreement.​

Exclusions: Certain schemes, like Right to Buy, guarantor mortgage applications, or builder incentive programmes, may not be accepted for second home mortgages.

Every lender’s a bit different, so it’s always worth comparing to find the right fit for your situation.

One more thing… your home could be repossessed if you don’t keep up repayments on your mortgage, so make sure you’re comfortable with what you can afford before taking the plunge.

How much can I borrow with a second home mortgage?

Many mortgage lenders offer up to around 4.5 times your annual earnings, though some may allow you to borrow more. Going off the typical figure, if you earn £50,000, you might be able to borrow up to £225,000. If you apply jointly with someone earning £30,000, that total could rise to £360,000.

Just bear in mind that your income is just part of the picture. Here are some other things a lender might look at when assessing your application:

  • Monthly outgoings: Lenders will consider your regular expenses like your existing mortgage repayments and household bills, credit card payments and childcare costs to make sure the second home mortgage is affordable.

  • Affordability stress tests: Lenders will check if you could afford your mortgage if interest rates rise.

  • Equity in your home: The more equity you have, the better your deal. A lower LTV ratio can help you access more competitive rates.

  • Creditworthiness: A clean credit report helps, so be sure to check it ahead of your application to spot any errors or find ways to improve your score.

When might I need a second home mortgage?

Fancy a holiday home?

A second mortgage could help make that dream a reality, whether it’s a cosy cottage in the countryside or a breezy flat by the sea. It gives you a way to spread the cost, so you and your loved ones have a special place to escape to whenever the mood strikes.

Split your time between two spots?

If you’re tired of long commutes or want to be closer to family during the week, a second home could be the answer. Maybe it’s a place in the city for work or a base near relatives. Either way, having another home can give you more flexibility in how you live.

Helping out your family?

A second mortgage can also be used to buy a home for a loved one, like a student flat for your child or a more permanent pad for a relative who needs support. Some lenders even let family members live there without an official tenancy agreement.

Or, if you’ve taken on a renovation project to move into later or sell on, this type of mortgage could help you work on it without living in the dust.

Mortgage guides

Answering your questions about second home mortgages

You might also be interested in

Loading image

Second Home Insurance

Cover for your second home against damage, theft and other unforeseen events.

Landlord Insurance

Second Home Lifetime Mortgage

Release equity from your main residence to make your second home dream a reality.

Page updated on 10th September 2025, Reviewed by Richard Groom