Can I Remortgage to Buy Another Property?

Can you remortgage to buy another property?

Yes — many homeowners use a remortgage to release equity from their existing home and put it towards another property purchase.

This equity can be used as a deposit, or sometimes to fund the purchase outright, depending on affordability, loan-to-value limits, and the lender’s criteria.

The key factor isn’t just how much equity you have — it’s whether you can comfortably afford both properties over the long term.

What lenders look for

• Available equity in your current home
• Overall affordability across both mortgages
• Purpose of the new property (home, second home, or buy-to-let)
• Expected rental income (if applicable)
• Your credit profile and existing commitments

Lenders will 'stress-test' repayments to ensure you could manage even if rates increase, which is why planning this properly is essential.

Stamp Duty when buying another property

When you buy an additional residential property in England or Northern Ireland, a Stamp Duty surcharge usually applies.

• An extra 5% is added to each Stamp Duty band
• Applies to buy-to-let and second homes
• Usually payable even if the first property is mortgaged

Step-by-step: how the process usually works

1. Work out your available equity in your current property
2. Check affordability across both mortgages
3. Confirm the purpose of the new property
4. Apply for the remortgage on your existing home
5. Secure finance for the second property

The order matters — and getting it wrong can cause delays or declined applications, which is why advice at the planning stage is so valuable.

FAQs