SECOND HOME MORTGAGES

Holiday Home

The majority of people who purchase second homes do so for this reason.  These are ideal for people who holiday regularly in a particular area and want the flexibility of self-catering at any moment they wish to take a short or long vacation.

In the right economy these properties can increase in value, allowing the owner to sell the property in order to provide a cash lump-sum for retirement, or to allow them to move into the property during their retirement in their desired location.  Second homes are increasingly popular in areas such as Devon & Cornwall and the Lake District as people can use the homes for holidays and then retire into the area when they cease working.

Second homes are popular with people who work away from home during the week and want to live in another area for part of the week to reduce commuting times.

Student Home

Some parents look to purchase property in university towns to enable their children to have accommodation whilst at university.  When the children graduate, the property can either be sold or converted onto a buy-to-let mortgage with another lender so the property can be let out to future students. 

Retirement home for parents

Yes, it makes a change, but second homes are also purchased by the children as a place for their parents to live during retirement.

Two of the most popular reasons for obtaining this type of mortgage are:

• For parents to enjoy retirement in a more desirable location
• Enable parents to move and live closer to their family for support or to look after their grandchildren.

Points to consider when looking to acquire a second home:

• Be aware that house prices can go down as well as up
• Your financial situation could change whilst owning the property.  Ensure that you are not tied into the mortgage for a long period of time as you may incur redemption penalties if you are forced to sell the property
• If you sell the property and it has increased in value, you will be liable for Capital Gains Tax

We have access to lenders who, subject to income / pension, will provide high loan to value mortgages or re-mortgages at very competitive mortgage rates for second homes.