How do I remortgage to buy another property?

You can release equity from your current home by remortgaging for a higher amount than you currently owe. This extra cash can then be used as a deposit for a second home or a buy-to-let investment.

How much equity do I need to release a deposit?

Lenders usually require you to leave at least 15-25% equity in your current home. For example, if your home is worth £400k, you would typically need to keep at least £60k-£100k of equity.

Can I have two residential mortgages?

Yes, provided you can prove you can afford the repayments on both loans. Lenders will look at your total income and all existing financial commitments.

Do I have to pay extra Stamp Duty on the second property?

Yes, in most cases, purchasing an additional property in the UK attracts a 5% Stamp Duty surcharge on top of the standard rates.

Is it better to remortgage or get a second charge loan?

Remortgaging is often cheaper as it uses your primary mortgage rate. However, if you have a very low interest rate on your current mortgage and don't want to lose it, a second charge loan or 'further advance' might be better.

Two modern houses side by side, keys passing hands

Remortgage to Buy Another Property

Unlock the value tied up in your current home to fund the deposit for a buy-to-let investment or a second home.

Speak to an Advisor

Releasing Equity for a Deposit

If your property has increased in value since you bought it, or if you have paid off a significant portion of your mortgage, you have built up "equity." You can remortgage to release some of this cash, providing you with a lump sum that can be used as a deposit for a second property.

This strategy is frequently used by property investors to build a portfolio (Buy-to-Let), or by families looking to purchase a holiday home or a property for their children.

How It Works

1. Calculate Your Equity

Your equity is the current value of your home minus your outstanding mortgage balance. Most lenders will allow you to borrow up to 75% or 80% of your home's total value, leaving the rest as a buffer.

2. Remortgage Your Main Home

We arrange a new mortgage on your current home for a higher amount. The old mortgage is paid off, and the extra cash is released directly to your bank account to use as your deposit.

3. Pass Affordability Checks

Because your main mortgage will now be larger, your monthly repayments will increase. The lender will strictly assess your income to ensure you can afford the higher payments.

4. Buy the Second Property

With your deposit secured, you then apply for a separate mortgage for the new property (e.g., a Buy-to-Let mortgage or a Second Home mortgage).

Important Considerations

Stamp Duty SurchargeWhen buying an additional residential property in the UK, you must pay a Stamp Duty surcharge (currently 5% on top of standard rates). You must factor this into your costs.
Two MortgagesYou will be responsible for two separate mortgages. If the second property is a Buy-to-Let and it sits empty, you still need to cover the payments on both loans.
Early Repayment Charges (ERCs)If you are currently tied into a fixed deal on your main home, remortgaging to release equity might incur hefty ERCs. In this case, a 'Further Advance' from your current lender might be a better option.

The Step-by-Step Process

Releasing equity to buy another property requires careful planning of two linked transactions.

Valuation & Equity Audit

We get an accurate valuation of your current home to determine exactly how much equity you can safely release.

Dual Affordability Check

We model your income against both the new larger main mortgage and the projected costs of the second property.

Deposit Release

We arrange the remortgage on your main home to release the cash lump sum for your deposit.

Second Property Purchase

With the deposit in your bank, we secure the most competitive mortgage for your new investment or second home.

Frequently Asked Questions

Ready to expand your property portfolio?

We can calculate exactly how much equity you can safely release and find the best mortgage products for both your main home and your new investment.

Get Expert Advice