Remortgage for a second home
Holiday home, weekend place, family bolt-hole. The 5% SDLT surcharge applies on the purchase. We line up lenders who treat second homes properly.
A second home is a property you intend to use yourself, not let out commercially. Lenders treat it as a residential mortgage on a second property, distinct from a buy-to-let. Stamp Duty Land Tax (SDLT) on additional properties currently carries a 5% surcharge above the standard rates, which is the single biggest cost line on most second-home purchases. The mortgage itself is straightforward if your income supports both the existing and the new monthly payments. We map the case carefully because lenders differ on what counts as a second home.
Who this is for
- You are buying a second residential property for your own use, not for rental.
- You want to remortgage your main home to release the deposit for the second.
- You are weighing up a second home against a buy-to-let purchase.
- You need to understand the SDLT surcharge before making an offer.
Second home or buy-to-let, the lender view
Lenders draw a sharp line between a second home (you use it yourself) and a buy-to-let (you let it for rent). A second home is underwritten as a residential mortgage with affordability tested against your own income. A buy-to-let is underwritten against expected rental income. The two products, the two rates and the two stress tests are different. Tell us your real intention from day one.
The 5% SDLT surcharge
Stamp Duty Land Tax (SDLT) on an additional property carries a 5% surcharge above the standard residential rates. On a £300,000 second-home purchase that is £15,000 of additional duty on top of the standard SDLT calculation. We surface this on the first call so it does not blindside you at exchange. As a worked figure: a £400,000 second home in 2026 attracts £7,500 of standard SDLT plus £20,000 of additional-property surcharge (5% of the whole purchase price), total £27,500. On a £600,000 second home, £17,500 standard SDLT plus £30,000 surcharge, total £47,500.
Releasing the deposit
Many second-home buyers fund the deposit by remortgaging their main residence. The released equity becomes the deposit on the second property, and a separate mortgage is taken out on the new home. We can run both legs of the case in parallel so they complete in sequence cleanly.
Worked example, £400,000 second home
Main residence worth £650,000 with a £200,000 mortgage. You remortgage to £320,000 (49% LTV) releasing £120,000 of equity. That funds an £80,000 deposit (20%) on the £400,000 second home plus £27,500 of SDLT and roughly £3,500 of legal and survey fees, with £9,000 left for furnishings. The new second-home mortgage is £320,000 at residential rates. Both legs complete in sequence. The lender on the second home stresses combined affordability against your full personal income; on a household income of £130,000 with no children, this typically clears.
Affordability for two homes
The lender on the second property will stress your income against the combined monthly cost of both mortgages, plus existing commitments. Two mortgages on one income is a reach. Two mortgages on a joint income is usually fine. We pre-stress before submitting.
If you change your mind and let it out
If you originally buy as a second home and later decide to let it out, you would normally need a "consent to let" from your lender or a switch to a buy-to-let mortgage. Going behind the lender on this is a breach of the mortgage terms and can be expensive when caught. The conversion route to a buy-to-let mortgage is straightforward; the conversion to a holiday let is more involved and usually requires a separate specialist holiday-let lender.
Common pitfalls we see
Underestimating the SDLT bill and arriving at exchange short on cash. Buying as a "second home" but actually intending to let it weekly on Airbnb (this is a holiday let, not a second home, and breaching the mortgage on this point is expensive). Forgetting that the second home becomes a chargeable asset for capital gains tax (CGT) when you sell. Ignoring the ongoing costs of running an additional property, including council tax, utilities, insurance and maintenance, which can add significantly to the overall cost of ownership. We work all of this on day one.
How Major Money Matters helps
Specific things we do for this case type. No generic platitudes.
Match the case to the right lender
Some lenders are second-home friendly, some restrict to main residences only. We pick lenders who actually do the case type.
Surface the 5% SDLT surcharge early
We model the all-in SDLT on the first call so the deposit and budget account for it, not just the property price.
Run both legs in sequence
If you are remortgaging the main home for the deposit, we line up the two completions so the funds land where they are needed.
Compare second home vs buy-to-let
If the property could go either way, we model both routes on tax, mortgage cost and exit. Sometimes buy-to-let wins, sometimes second home does.
Frequently asked questions
What is the difference between a second home and a buy-to-let?
A second home is for your own use. A buy-to-let is for letting to tenants for rental income. The mortgage products are different, the underwriting is different, and the tax position is different. Lenders need a clear answer up-front.
How much extra Stamp Duty do I pay on a second home?
A 5% surcharge on top of the standard residential SDLT rates currently applies to second properties. On a £300,000 purchase that is £15,000 of additional duty.
Can I use my main home equity as the deposit?
Yes. Remortgaging your main residence to release equity, then using that cash as the deposit on the second home, is a standard structure. We run both transactions in sequence.
Will the lender stress my income against both mortgages?
Yes. The lender on the second property will calculate affordability against your existing main-residence mortgage, the new second-home mortgage, and your other commitments. Two mortgages on a joint income usually clears comfortably. Two mortgages on a single income is tighter.
Can I let out my second home occasionally?
Most lenders draw a hard line. A second home is for your own use only. If you intend to let, even occasionally, the right product is a buy-to-let or a holiday let mortgage. Going against the lender terms is a breach of the mortgage.
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Plan the second home properly
A quick 15-minute call tells you the SDLT cost, the mortgage cost and which structure (second home vs buy-to-let) fits your case.
Named adviser, wherever possible. No call centre. We aim to return your call as quickly as we can. Mon to Fri 9am to 5pm, weekend appointments on request.