If you’ve built up equity in your current home, you might be thinking about how you can make it work harder for you. Many homeowners are now choosing to unlock this value, not to renovate, but to buy a second property.
So, can you remortgage to buy another property? In many cases, yes. Whether you’re helping a child get on the ladder, investing in a rental home, or buying a second house for yourself, remortgaging could give you the funds you need, without selling your current home.
What does remortgaging for another property mean?
Remortgaging to buy another home means switching your existing mortgage to a new deal, often with a higher loan amount. The aim is to release some of the value (equity) you’ve built in your current property and use it as a deposit or full payment toward a second one.
Rather than saving up for years, you’re using what you already own to move faster. This is called remortgaging to release equity to buy another property, and it’s a popular route for homeowners who want to expand their property portfolio or support their family.
Using equity to raise funds
Let’s say your home is worth £300,000 and your mortgage balance is £150,000. That gives you £150,000 in equity. If your lender allows it, you might be able to remortgage and borrow more, say £200,000. You’d repay your old mortgage and take the extra £50,000 to use toward a new property.
This is how many people choose to use their home’s value to fund a second property. The amount you can borrow depends on your equity, income, and affordability checks.
If you’re thinking, can I remortgage to buy another house without selling my current one? Yes, that’s exactly what this route allows.
Residential vs buy to let
Your goal for the second property matters. If you want a second home to use yourself, such as a holiday home, you’ll usually take out a standard residential mortgage. If the plan is to rent it out, you’ll likely need a buy to let mortgage.
In both cases, lenders will check your credit record, income, and the property’s value. For buy to let, they’ll also look at expected rental income.
Knowing whether the new home is for personal use or investment helps you structure your mortgage application in the right way.
When is this approach a smart strategy?
Many people are surprised to learn just how useful equity can be when managed well. Below are some of the most common reasons for considering this path.
Buying a second home
If you’ve always wanted a second home, whether in the countryside, by the sea, or closer to work, remortgaging to release equity to buy another property could help you secure it sooner. You avoid taking out a personal loan and can often access better mortgage rates than with unsecured borrowing.
Investing in a rental property
You might be looking to grow your income through property. In this case, can you remortgage to buy another property and use it for letting? Yes, but you’ll need to meet stricter lending criteria. Rental yields and your own income will be assessed, especially if you’re applying for a buy to let loan.
Helping a family member buy their first home
Rising property prices mean younger generations often struggle to save a deposit. If you’re asking, can I remortgage to buy another house to help my child get started? The answer is yes, and many parents do this. You might gift or loan the released funds as part of their deposit.
How much can you borrow?
The amount you can borrow depends mainly on how much equity you have in your home and how much the lender is willing to offer based on your finances.
Equity requirements
Before making a decision, your lender will look at how much equity you’ve built up. Equity grows as you pay off your mortgage and as your home increases in value. The more equity you have, the more flexibility you may get when applying to remortgage to purchase another property.
If you’ve owned your home for a few years and it has gone up in value, you may be in a good position to release a lump sum. However, your lender will still check if this step is affordable and suitable for your circumstances.
Loan to value considerations
The remortgage LTV, or loan to value, shows the percentage of your home’s value that you want to borrow. For example, if your home is worth £300,000 and you want to borrow £225,000, your LTV would be 75%.
Most lenders have limits on the maximum remortgage LTV they accept, often ranging between 75% and 90%, depending on the purpose and your income. If you’re investing in a second home or helping a family member, you might get more flexibility than with a buy to let case.
Other things to consider
Before you go ahead with a second property purchase using a remortgage, it’s worth looking at the bigger picture. There are a few extra things that can affect your long-term plans.
The impact on your current mortgage
By increasing the size of your mortgage to release funds, you’re likely extending the loan term or changing your repayments. This could mean higher monthly costs or a longer commitment. You’ll need to be sure that these changes won’t affect your ability to manage your other outgoings.
You should also check if your current mortgage has early repayment charges. These fees can reduce the benefit of switching deals.
Affordability checks and repayment planning
Even though you’re using your own equity, your lender will still check if you can afford the new mortgage. This includes reviewing your income, spending habits, credit history, and any other existing loans.
When using a remortgage to purchase another property, make sure you can manage repayments for both your existing home and the new one, especially if rental income is uncertain or if you’re helping someone else.
Tax or stamp duty considerations
Buying another property in the UK often comes with higher stamp duty charges. Even if the second home is for personal use, you may need to pay an extra on top of the standard rates.
This is an important cost to factor in when planning your budget. You may also need tax advice if the property is an investment, as rental income and capital gains could affect your overall tax position.
Alternative options available
Remortgaging to buy a second property isn’t your only option. Depending on your situation, other routes may make more sense, especially if you only need a small amount or prefer to keep your current mortgage unchanged.
Bridging loans
A bridging loan is a short-term loan that helps you buy a new property before you sell an existing one. It’s fast and flexible but tends to come with higher interest rates. It’s often used when you need quick access to funds and have a clear repayment plan in place.
Secured loans
If you don’t want to switch your current mortgage, a secured loan could be an alternative. It’s added on top of your existing mortgage and secured against your home. You can use the funds for buying another property or for other big expenses.
This option keeps your main mortgage deal untouched, but interest rates can be higher than a standard remortgage.
Further advances
You could also ask your current lender for a further advance. This is an extra loan from them without switching deals. It’s usually cheaper than a personal loan and can be quicker than applying for a new mortgage altogether.
However, not all lenders offer this, and the terms may vary depending on your existing agreement.
Final thoughts
Remortgaging to fund a second property isn’t just possible, it’s a path many homeowners take to move ahead financially or support family. With the right equity, stable income, and careful planning, it can be a smart and flexible strategy.
But it’s not without its challenges. Higher repayments, lender checks, and stamp duty all need to be part of your thinking. The good news? You’re not alone. With expert support, clear goals, and a full understanding of your options, you can make informed decisions that match your future plans.
If you’re considering this step, speak to a mortgage adviser or broker who can look at your full financial picture. They’ll help you find the best deal and decide if remortgaging is the right way to buy your next property.