Can I Remortgage to Buy Another Property?
Buying another property can feel like a huge financial milestone, whether you’re thinking about a holiday home, helping family onto the ladder, or dipping into buy-to-let. The good news is that remortgaging to raise funds is often possible. The key is understanding how lenders look at it, and how to put yourself in the best position.
Quick Takeaways:
You can remortgage to buy another property
Equity in your current home can fund the deposit for your purchase
The purpose of the property (buy-to-let, holiday home etc) changes how lenders assess you
Good planning and advice can save you time, stress and money.
Friendly, expert mortgage advice backed by our happy clients.
Can You Remortgage to Buy Another House?
In many cases, yes. When you remortgage, you’re essentially swapping your current deal for a new one, and you can also release equity at the same time. That equity can then be used as a deposit or even to purchase another property outright if there’s enough.
This isn’t just about numbers on paper. Lenders want to know:
Why you’re buying the second property
How you’ll afford the extra financial commitment
Whether your current home still has enough equity left in it after releasing funds
What Lenders Look For
When assessing an application like this, lenders focus on:
Your income and outgoings: Can you cover two mortgages if needed?
The equity in your current property: The more equity you have, the better your options.
Credit history: A clean record is especially important when borrowing for multiple homes.
Purpose of the new property: Holiday home, buy-to-let, or helping a family member will all be treated differently.
Did you know:
If you’re buying a buy-to-let, lenders often assess affordability based on the expected rental income, not just your salary.
How do I remortgage my home to buy another property?
If you’re looking to use your current home to springboard into buying another property, here’s the process most people will follow. It’s not as complicated as it sounds, but having a clear roadmap makes it much easier.
Step 1: Work Out Your Equity
Your equity is the value of your home minus your outstanding mortgage.
Example: If your home is worth £300,000 with £180,000 outstanding mortgage, you have £120,000 in equity.
This equity is what you’ll be releasing to help fund your new purchase.
Most lenders will want you to leave at least 10–20% equity in your home after the remortgage, so you won’t usually be able to take it all out.
Step 2: Check Your Credit and Affordability
Lenders want to see you can manage both your current mortgage and the new financial commitment.
They’ll review your:
Income (from salary, self-employment, or other sources)
Outgoings (loans, bills, credit cards)
Credit history
Most lenders will want you to leave at least 10–20% equity in your home after the remortgage, so you won’t usually be able to take it all out.
Step 3: Decide Purpose of the New Property
Buy-to-Let: Affordability is judged mainly on rental income potential. Your deposit will need to be at least 15% of the purchase price.
Holiday Home: Your deposit will usually need to be at least 25-30% of the purchase price.
Helping Family: Can be straightforward, will mainly be based on your affordability (ability to maintain both mortgages).
Step 4: Applying for a Remortgage Deal
We'll find you the lender most suited to your situation and goals.
Your current mortgage will be switched to a new one, releasing some of your equity as a lump sum.
That lump sum can then go towards the deposit, or even the full purchase price if it's enough.
Step 5: Purchase of Second Property
We'll compare lenders who are open to second property purchases.
Criteria can vary widely, so our advice can save you both time and money.
We'll set up your new mortgage application (if required) and get you on track to getting those property keys!
FAQs
Can I remortgage to buy a rental property?
Yes, many people use equity from their home to fund a buy-to-let deposit. Lenders will look at the rental income potential of the new property alongside your own finances.
Can I remortgage to help my child buy their first home?
Yes, some parents release equity to gift or loan a deposit. It’s worth getting advice on the tax and legal sides too.
Do I need a bigger deposit for a holiday home?
Often yes. Some lenders see holiday homes as higher risk, so they may ask for a larger deposit or limit the amount you can borrow.
Need a Hand?
Remortgaging to buy another property can be a smart move, but it’s not always straightforward. That’s where proper, friendly advice makes all the difference.
Ready to explore your options?
Prefer to email first? No problem!
Submit your enquiry here →
Need a Hand?
Remortgaging to buy another property can be a smart move, but it’s not always straightforward. That’s where proper, friendly advice makes all the difference.
Ready to get started?
Prefer to email first? No problem!
Submit your enquiry here →
What our clients say about us ✪✪✪✪✪
We’re proud to help homeowners, buyers, and investors across Broadstairs, Kent and beyond with expert mortgage and financial advice. See what our happy clients have to say!
THINK CAREFULLY BEFORE SECURING OTHER DEBTS AGAINST YOUR HOME.
YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE OR ANY OTHER DEBT SECURED ON IT.
IMPORTANT: With investments, your capital is at risk. Pensions and investments can go down in value as well as up, so you could get back less than you invest.
Need Financial Planning Ltd is registered in England and Wales no. 10901658. Registered office, 123 High Street, Broadstairs, Kent, CT10 1NQ. Authorised and regulated by the Financial Conduct Authority. Need Financial Planning Ltd is entered on the Financial Services Register https://register.fca.org.uk/ under reference 977136. If you wish to register a complaint, please write to [email protected] or telephone 01843 228800. A summary of our internal complaints handling procedures for the reasonable and prompt handling of complaints is available on request and if you cannot settle your complaint with us, you may be entitled to refer it to the Financial Ombudsman Service at www.financial-ombudsman.org.uk or by contacting them on 0800 0234 567.
© Copyright 2022 Need Financial Planning Ltd. All rights reserved. Privacy Policy | Disclaimer | Cookie Policy