Remortgage to Buy a Second Property

Thinking about buying a second home, holiday home, or investment property? A remortgage to buy a second property can be an effective way to raise a deposit by using the equity in your current home.

At Empire Mortgages, we provide clear, expert advice to help you understand your options, compare deals, and decide whether remortgaging to fund a second property is the right move for you.

Understanding How a Remortgage Can Fund a Second Property

A remortgage to buy a second property means refinancing your existing mortgage onto a new deal and borrowing more than your current balance. The additional borrowing is then used as all or part of the deposit for your second property.

This approach is commonly used to:

  • Buy a second residential home
  • Purchase a holiday home or holiday let
  • Start or expand a buy to let portfolio
  • Help children or family members onto the property ladder

Rather than relying solely on savings, you use the equity already built up in your current home to unlock new property opportunities.

Why Consider a Remortgage to Buy a Second Property?

There are several reasons homeowners explore releasing equity to fund another purchase:

Raising a deposit – use equity from your current home as the deposit for a second property.

Starting or growing an investment portfolio – purchase your first or additional buy to let properties.

Holiday or second home – buy a property in another location for personal use.

Helping family – provide a gifted deposit to children or relatives.

Restructuring your finances – combine remortgaging with securing a better rate on your current mortgage.

Empire Mortgages will help you weigh up the benefits and potential risks before you commit to any new borrowing.

How Much Can You Borrow to Buy a Second Property?

How much you can raise through a remortgage depends on several key factors:

Current property value – the higher the value, the more equity may be available.

Existing mortgage balance – equity is the difference between your home’s value and what you still owe.

Loan-to-value (LTV) limits – lenders typically set maximum LTVs for remortgages.

Affordability – your income, outgoings, and other commitments must support the higher borrowing.

Credit history – a stronger credit profile can open up more options and competitive rates.

Purpose of the second property – buy to let, holiday home, or second residence are all assessed differently.

We will complete a detailed affordability assessment, explain how much you may be able to borrow, and show how it affects your monthly payments and overall mortgage term.

Empire Mortgages - Mortgage Brokers Fife - Remortgage to buy second property

What Type of Second Property Are You Planning to Buy?

The way lenders view your application will depend on the type of second property you want to purchase.

Buy to Let Property – If you are buying a rental property, your remortgage funds will usually act as the deposit, and the new property will be financed with a buy to let mortgage. Lenders will assess both your personal finances and the expected rental income from the new property.

Holiday Home or Holiday Let – Buying a holiday home for your own use or as a holiday let may involve different criteria to standard buy to let. Some lenders have specific products for holiday lets, while others restrict usage. We can guide you through the most suitable options.

Second Residential Home – You may want a second residential property for work, family, or lifestyle reasons. In this case, lenders will look closely at your combined commitments, including both mortgages and other outgoings.

Helping Family or Children Purchase – You may choose to remortgage to release equity and use the funds as a gifted deposit for a child or relative. Lenders often have specific requirements around gifted deposits, which we will explain clearly.

What Lenders Look For When You Remortgage to Buy a Second Property

When considering a remortgage to buy a second property, lenders will review:

Your income and regular outgoings

Existing borrowing and financial commitments

The amount of equity and resulting loan-to-value

Your credit history and recent financial behaviour

The intended use of the second property (residential, buy to let, holiday home)

Potential rental income (for buy to let or holiday let purchases)

Any early repayment charges on your current mortgage

Stamp Duty implications for owning more than one property

Higher Stamp Duty Land Tax usually applies to additional properties, so it is important to factor this into your overall budget. We will discuss these costs with you as part of the advice process.

Expert Advice on Funding a Second Property Through Remortgaging

At Empire Mortgages, we specialise in helping clients structure their borrowing sensibly when buying additional properties. Our role is to ensure you understand your options and the long-term implications of any new borrowing.

With us, you benefit from:

Over 60 years of combined mortgage experience

Whole-of-market access to a wide range of lenders and products

Tailored advice based on your goals and financial position

Support in arranging both the remortgage and second property mortgage, where required

Clear explanations of rates, fees, and lender criteria

Flexible appointments by phone, video, or in person

Whether you are an aspiring landlord, a growing investor, or simply looking for a second home, we will guide you through the remortgaging process from start to finish.

How the Remortgage to Buy a Second Property Process Works

We follow a structured process to help you raise the funds you need confidently and efficiently:

Initial Consultation and Affordability Check – We review your income, outgoings, current mortgage, and goals for the second property.

Property Valuation – A valuation of your current home confirms how much equity is available and what loan-to-value a lender may accept.

Whole-of-Market Remortgage Search – We compare remortgage deals from across the market, considering both rate and flexibility.

Application Preparation and Submission – Once you are happy with a recommendation, we submit the remortgage application and manage the supporting documents.

Approval and Release of Equity – When the remortgage completes, your existing mortgage is repaid and the surplus funds are released as a lump sum, which you can then use as a deposit for your second property.

Second Property Purchase – We can also assist with arranging the mortgage on the new property, ensuring both elements work together as part of your overall strategy.

Other Ways to Fund a Second Property

A remortgage to buy a second property is not the only option. Depending on your circumstances, you might also consider:

Further Advance – borrowing more from your current lender without changing provider.

Second Charge Mortgage – an additional secured loan alongside your existing mortgage.

Savings or Investments – using existing savings as all or part of the deposit.

Family Gift or Joint Purchase – combining your resources with family members.

Each approach has different pros, cons, and cost implications. Empire Mortgages will help you compare options and choose the route that fits your plans and risk profile.

Remortgage Advice for Second Property Buyers Across Fife

Based in Dunfermline, Empire Mortgages works with clients across Fife and the surrounding areas, including Kirkcaldy, Glenrothes, Cupar, St Andrews, Leven, and further afield.

Our combination of local market knowledge and whole-of-market mortgage access allows us to provide practical, relevant advice to homeowners looking to purchase additional properties.

Ready to Explore Buying a Second Property?

Whether you are planning a buy to let investment, a holiday home, or a second residence, Empire Mortgages can help you understand your options and decide if a remortgage to buy a second property is right for you.

Book Your Free Consultation with Empire Mortgages Today

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Paula Wallace
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Craig has been helping us with our mortgage since we bought our first home in 2016. Now we are settling into our second home with yet more excellent service from Craig, Terri and his fabulous team at Empire Mortgages. Highly recommend 😊
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Highly recommend! I have had Nathan as my mortgage advisor for a good 4 years. So helpful, always gets the best deals and super lovely and great at what he does! He was with me every step of the way when I was getting my first mortgage, he made it all so easy and no stress at all.
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One year in my new home, and I couldn’t be happier with how smoothly the whole journey went. Thanks to Empire Mortgages Ltd and a special mention to Nathan Hunter for making the mortgage process completely stress-free. I genuinely had to do very little other than trust Nathan and leave everything in his capable hands. Buying a home can be overwhelming, but having the right person guiding you makes all the difference. A year on, with no issues whatsoever, I can truly say when you choose the right people, you’re sorted for life. Hassle-free, stress-free and highly recommended!
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Brian Sparling
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I can highly recommend both Empire Mortgages Ltd and Nathan Hunter...Nathan made the process really easy and straight-forward, talked through all the options and made some recommendations based on what I needed. He kept me updated on progress even when I was away on holiday. I wont be using anyone else for mortgages now!
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Brilliant service from beginning to end. Craig has been our adviser for 10 years and both and the Team done a stellar job as always. I still cannot believe how quick and easy our application to offer journey has been. Thanks again
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Great, thorough, informative service from start to finish. And very personable too!
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Michael
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Nathan and the guys provide a first class service and made getting a mortgage for our first house and easy and straightforward process. They kept us up to date with everything and since then they have helped get us the best deal for us everytime we need to renew.
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Abbie Pringle
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I would highly recommend Nathan at Empire Mortgages Ltd. He has always been a great help. He’s friendly and very informative. We are really happy with the service provided and will continue using Empire Mortgages Ltd in the future.

Remortgage to Buy a second property - FAQ's

Can I remortgage my home to buy a second property?

Yes. Many homeowners remortgage to release equity which is then used as a deposit for a second home, buy to let, or holiday property, subject to lender criteria and affordability.

How much equity do I need to release?

This depends on the price of the second property, the deposit required, and your current mortgage balance. We will help you calculate what is realistic.

Can I use remortgage funds as a buy to let deposit?

Yes. It is common for landlords to use a remortgage on their home to raise a deposit for a buy to let. Lenders will assess both your personal finances and the projected rental income.

Does buying a second property affect Stamp Duty?

In most cases, buying an additional property means paying higher rates of Stamp Duty Land Tax. We will highlight this so you can budget accurately.

Can I remortgage with bad credit to buy another home?

It may still be possible, but options and rates can be more limited. We work with a range of lenders, including those who consider less-than-perfect credit.

How long does the remortgage process take?

Typically, a remortgage takes around 4–8 weeks, depending on the lender, valuation, and legal work involved.

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Recommend a friend who is new to Empire Mortgages and if they then take out their mortgage with us, you’ll each receive £50 worth of vouchers.

The guidance provided within this website is subject to the UK regulatory regime and is therefore primarily targeted at consumers based in the UK.

Empire Mortgages Ltd is an Appointed Representative of PRIMIS Mortgage Network, a trading name of TenetLime Ltd. TenetLime Ltd is authorised and regulated by the Financial Conduct Authority. Tenet Lime Ltd  is entered on the Financial Services Register (www.fca.org.uk/register) under reference 150643.

Empire Mortgages Ltd may charge a fee for mortgage advice. The amount of the fee will depend on your circumstances and will be discussed and agreed with you at the earliest opportunity. Our typical fee is £295 payable on receipt of a full mortgage offer.

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