Refinance Your Second Home
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If you have a mortgage for a second residential home and want to raise additional cash to consolidate debt or carry out much needed building works, remortgaging could be an option.
The process is largely the same as remortgaging your main home, and even if you have a less than perfect credit score, there may be a deal that works for you.
Our guide to remortgaging a second residential home breaks it all down step-by-step, so you know exactly what you need to consider along the way.
This guide applies only to second residential homes. It does not cover buy-to-let properties or holiday homes. If your second property is designed to generate income, it cannot be classified as a residential property for mortgage purposes.
People may have a second residential property for many reasons, such as:
Reduce your outgoings and combine your debts into one monthly payment.
Fast and flexible loans for borrowers who need effective, short-term deals
Our guide covers answers to some common property-related questions.
Find affordable loans that can help you increase the value of your property
No matter your credit rating we’ll help you find a deal that works for you.
Raise the deposit you need to invest in new property or refurb an existing one.
Here are the usual steps involved in remortgaging your second home.
1.Check your existing mortgage
If your property already has an existing mortgage, get in touch with your lender to:
It’s also helpful to gather together your mortgage documents, as these will be needed for your remortgage application.
Get in touch with the Willows team before you start your application and we can help you prepare all the information you’ll need to submit
2.Consider how the property is used
Some lenders have policies about how long a property can remain unoccupied before it becomes ineligible, so it’s important to check this early on.
Long absences away from the property can also make it difficult to get standard insurance, as most providers will only allow the property to be unoccupied for no longer than 30 days.
3.Prepare proof of income
Lenders will want to get a better idea of your financial circumstances, although the information you need to provide will depend on your employment status:
To fully assess your affordability, lenders will usually ask you to provide information about your monthly outgoings.
You can speak to one of our expert advisors to get more insight into the type of documents you will need to submit based on your work circumstances.
4. Determine how much you would like to borrow
This will depend on why you want to remortgage your second home. For example, if you intend to:
The amount you want to borrow should also be factored into how much you can realistically afford to repay each month.
A good place to start is by creating a budget to see how much you have left over each month to put towards a second mortgage once you have reviewed your earnings and outgoings
5. Consider your future plans
Think about how long you intend to keep the property as a residential home. For example, if you:
As we mentioned earlier, speak with your current mortgage provider to find out if you will have to pay any ERCs for remortgaging or changing products.
One of the most important aspects of remortgaging a second residential home is passing the lender’s affordability assessment.
Since you are the owner of two properties, lenders will usually factor in double the expenditure, so it’s a good idea to do the same when creating a budget.
Lenders will typically duplicate costs for:
The aim of an affordability assessment is to ensure that you can ‘comfortably’ afford to take on the repayments, including the interest. This allows lenders to manage the risk so they can understand how suitable your finances are for the proposed mortgage.
We help people all the time with affordability assessments, so feel free to give us a call to get the ball rolling.
Aside from reviewing your finances based on your current income and expenditure, lenders will also factor in your:
Getting a quote won’t affect your credit score
Willows Finance has helped countless people from all walks of life to access the money they need without complicated delays. And we don’t just say that our customers come first – it’s something we put into action every single day.
Finding the right finance doesn’t have to be complicated – so, we’ve made the process clear and simple. Whether you’re applying for a Secured Loan, Mortgage or Bridging Finance, we’ll compare the market for the best options that meet your criteria and provide you with a fast no-obligation quote.
Complete a short online form and tell us how much you would like to borrow.
See if you meet the basic criteria for the loan and that you can afford the monthly repayments
We submit the application for the underwriter to review and issue the binding offer.
You sign and return the offer, and the lender releases the funds.
Finding the right remortgage product for your second home can be challenging, as there are so many lenders and deals to choose from.
Willows Finance simplifies the process by doing all the hard work for you, comparing hundreds of products to find one that suits your finances. We’ll also ensure you get the answers you need quickly and efficiently, potentially saving you both time and money.
To find out more about how we can help, you can speak with a member of our team today by calling 01656 766 158.
If you have a question – we’d be happy to talk to you – simply call us…
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At Willows Finance Ltd, we appreciate that your privacy is extremely important to you. With this in mind, we have put in place a number of measures to ensure that any personal details we obtain from you as a result of visiting this website is processed and maintained in accordance with accepted principles of good information handling and also in accordance with the Data Protection Act 1988.
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Willows Finance Limited
Brocastle, Bridgend, CF35 5AS
Authorised and regulated by the Financial Conduct Authority
Firm Reference Number: 670052
Company Number: 6678545 (Registered in England and Wales)
This document outlines the services we provide. If you need clarification, please contact us at 01656 766158.
We offer first and second charge regulated mortgage contracts for business or personal use.
Other finance options may include:
Regulatory Status:
We offer an advised mortgage broking service and provide enough information for you to make an informed decision.
We are not independent financial advisers. Free debt advice is available from the Money Advice Service.
You can view our privacy policy at: https://willowsfinance.co.uk/privacy-cookie-policy/.
Lenders may also have their own privacy policies which will be provided to you.
We charge a broker fee upon loan completion. The average fee is approximately 5%, depending on your situation.
Fee details:
No refund is offered after completion. You may pay upfront or add the fee to your mortgage. Fees and commission will be detailed in your ESIS and Mortgage Agreement.
You will receive a Mortgage Agreement and an ESIS document detailing:
You may cancel your application anytime before completion without any charge. Mortgages cannot be cancelled after completion.
Missing payments can lead to charges, repossession, and negative impacts on your credit rating.
Consolidating debt may result in higher long-term interest. Securing debt against your home increases risk.
Your home may be repossessed if you do not keep up repayments on a mortgage or other loan secured on it.
If you wish to complain, contact us at:
Willows Finance Limited
Brocastle, Bridgend, CF35 5AS
Tel: 01656 766158
You may be able to refer your complaint to the Financial Ombudsman Service.
We are covered by the FSCS. You may be eligible for compensation of up to £85,000 per person per firm for mortgage advice and arranging.
More info: www.fscs.org.uk
After processing your application, you’ll receive a Mortgage Agreement and have a 7-day reflection period.
Contact us during this period with any questions. To proceed, sign and return the agreement.
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