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Second home mortgages
Looking to buy a holiday home, or purchasing a home for a family member? Find out if you can apply for a second home mortgage with Lloyds Bank.
What is a second home mortgage?
A second home mortgage is a type of mortgage for people who already own a home and are looking to buy another property. You may want to get a second mortgage if you’re looking to:
- buy a holiday home
- get a second place closer to where you work
- buy a home that a relative will live in.
Mortgages on second homes work in a similar way to other mortgages, but there may be more checks to see if you can afford it. So, it’s important to make sure you can afford the deposit, repayments and other costs on top of your current mortgage.
Can I get a mortgage on a second home?
You can apply for a mortgage on a second home, depending on the lending criteria, credit checks and mortgage application. Check the requirements before you apply.
Your second home mortgage options
You could lose your home if you don’t keep up your mortgage repayments
Let’s take a closer look
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Yes. When buying a second home in England or Northern Ireland, you’ll usually pay 3% extra on top of Stamp Duty Land Tax (SDLT). A similar rule applies to Land and Buildings Transaction Tax in Scotland and Land Transaction Tax in Wales. Learn more about stamp duty.
Bear in mind, you may also have to pay Capital Gains Tax on the sale of a property. Speak to a tax specialist for more information on this.
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You may need a larger deposit to get a mortgage for a second home. Lenders may also conduct stricter financial checks to make sure you can handle the extra costs of owning a second property.
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If you’re thinking of buying a second home with Lloyds Bank, you’ll need to have a minimum deposit amount of 25%. Of course, the higher deposit you put down, the better mortgage rate you may get. You can use our mortgage calculator to compare different deposit amounts.
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Yes, you can have a relative or family member live in your second home. You don’t need a formal tenancy agreement in place for this, and it’s up to you whether they pay rent.