Berks & Bucks Finance
Remortgage to Buy another Property
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Written by Harvey Sandhu, specialist mortgage adviser with over 40 years of experience. Berks & Bucks Finance . Updated 2026.
Can I remortgage my house to buy another property?
Yes — you can remortgage your home to buy another property. Most homeowners do this by releasing equity from their existing property and using it as a deposit for a second purchase i.e
- Buy-to-let investment,
- Second home
- Holiday Home
- Let-to-buy move
- Helping a child onto the property ladder
The structure of borrowing across both properties determines whether it works.
Who this guide is for
This guide is for homeowners with equity who are considering a second property purchase and want to understand how lenders assess both properties before committing. Whether you are:
- Releasing equity from your home to fund a buy-to-let investment
- Buying a second home or holiday home
- Keeping your current home as a rental and moving (let-to-buy)
- Helping a child onto the property ladder
- Weighing up whether the numbers work across both properties
Two properties mean two separate lending assessments. Each mortgage stands on its own — your current lender does not automatically follow you to the new one.
Check if your plan works.
No obligation. No jargon. I’ll tell you early if something isn’t possible
What You’ll Find on This Page
What is the difference between a second mortgage and a remortgage?
They are not the same thing, and people often mix them up.
Remortgaging to release equity
You replace your current mortgage with a larger one on the same home. The lender releases the extra as cash. You have one mortgage on one property.
Taking a second mortgage
You use the cash from the remortgage as a deposit and take a separate mortgage, secured against the new property. You then hold two mortgages, on two properties.
How long does it take to remortgage to buy another property?
A straightforward equity release remortgage typically takes 4–6 weeks from application to completion.
If you are also applying for a mortgage on the new property, as in a let-to-buy or second-home purchase, both applications will run in parallel, and timing needs careful management.
Making sure you start 3–6 months ahead gives you the best chance of a smooth outcome.
How do I release equity to buy another property?
You will do this by taking out a remortgage on a property
How much you can borrow to buy another property depends on three things: your equity, your income, and the type of property you are buying.
Here is a worked example showing how equity from one property funds the deposit on another.
Equity release to fund a second property
Current property value: £450,000
Current mortgage balance: £200,000
Available equity: £250,000
Remortgage to 75% LTV: £450,000 × 75% = £337,500 maximum loan
Current balance: £200,000
Equity released: £137,500
That £137,500 could fund a deposit on a second property worth up to £550,000 at 25%.
The second property then requires its own mortgage application. Final figures depend on income, affordability, and lender criteria on both properties.
What can you buy when you remortgage to buy another property?
There are three main options, and what applies to you decides how the borrowing is arranged.
Option 1 — Buy-to-let investment
You release equity from your home, use it as a deposit, and take a buy-to-let mortgage on the new property.
Buy-to-let lending is not based on your salary.
The amount you can borrow is determined by rental income.
When assessing your Mortgage Borrowing for a buy-to-let, lenders apply a stress test, meaning rent from the buy-to-let must cover 125–145% of the monthly mortgage payment at around 5–5.5% interest. If anticipated rent falls short, borrowing reduces accordingly.
Holiday let mortgages work similarly but are assessed differently to standard buy-to-let.
Exploring a buy-to-let or holiday let purchase? See our full buy-to-let guide for lender criteria, rental stress tests, and deposit requirements.
Route 2 — Buying a second home
You keep your current home and buy another for personal use — a weekday base, a second residence, or a property for family.
What lenders focus on:
- If you are taking out another mortgage on the purchase, full affordability checks will be done across both mortgages simultaneously
- Your income must support both sets of repayments alongside all your other commitments
This is where many plans fall over. Comfortably affording one mortgage is not the same as affording two. Lenders assess both together, and the combined commitment must pass their stress testing.
Route 3 — Let-to-buy
You convert your current home to a rental, release equity from it, and use that equity as a deposit for a new property to live in.
This means two mortgage applications running simultaneously — a buy-to-let remortgage on your existing home, and a new residential mortgage on the property you are moving into.
Timing matters. Some lenders require details of the purchase before issuing the let-to-buy offer. The structure must be worked out before either application is submitted.
What does it cost to remortgage to buy another property?
Buying a second property brings costs that a normal remortgage does not.
The key point is that you will probably end up having two mortgages—one for equity raising and another for the purchase, which means two sets of fees. Be sure to include all these costs in your calculations before making a decision.
The main ones to account for:
- Stamp duty surcharge — an extra 5% on top of standard stamp duty when you buy an additional property
- Early repayment charges — if you remortgage before your current deal ends
- Arrangement and valuation fees — on the new borrowing
- Legal fees — on both the remortgage and the purchase
- Broker Fees — the amount will vary from broker to broker
- Solicitors’ Fees — some lenders provide Fee Free Legals, some do not
Can I release equity to buy a property abroad?
Yes, you can. You can release equity from a UK property to fund an overseas purchase. The UK remortgage is assessed as a normal remortgage.
If you need a mortgage on the overseas property, you’ll need a specialist international product, as UK lenders typically don’t lend outside the UK.
Currency and legal requirements will also apply.
Can I rent out my house on a normal mortgage?
Not without permission. A standard residential mortgage assumes you live in the property. Renting it out without telling your lender breaks the terms of your mortgage.
You have two options. You can ask your lender for consent to let, which is sometimes temporary. Or you can switch to a buy-to-let mortgage, which is built for renting the property out.
Always speak to a broker before you let out a home. Getting this wrong can put your mortgage at risk.
What is consent to let? (An option many people overlook)
Before committing to any of the three routes, check whether a full remortgage is necessary.
If you are midway through a fixed-rate mortgage with early repayment charges (ERC), switching to a buy-to-let mortgage may not be cost-effective.
An alternative is to ask your existing lender for consent to let — permission to rent out your property without remortgaging.
Not all lenders offer this, and conditions apply. But for clients who want to move without triggering an ERC, it is worth checking before assuming remortgage is the only option.
Can I rent out my house and buy another one?
Yes, this is called let-to-buy. You keep your current home, switch it to a buy-to-let mortgage, and rent it out. You then buy a new home to live in.
People do this when they want to move but keep their old home as an investment. Releasing equity from it can also fund the deposit on the new place.
You cannot usually rent out a home on a standard residential mortgage. You need the lender’s permission, or a switch to the right type of mortgage first.
Can I remortgage a buy-to-let to buy another property?
Yes. If you already own a buy-to-let with equity in it, you can remortgage that property to release cash. You then use the cash towards another purchase.
Lenders assess this on the rent the property earns, not just your personal income. The stronger the rental figure, the more you can usually release.
Buy-to-let lending works on a rental stress test. The expected rent usually needs to cover 125–145% of the mortgage payment, checked at a higher rate than you actually pay. If the rent falls short, the amount you can borrow drops.
Building a portfolio this way is common. Each property you add changes how lenders view the next one, so it is worth planning the order with a broker.
If you’re reading this thinking, “I still can’t tell if switching is worth it”, that’s normal.
Most homeowners feel more confident when they take the time to carefully review all the details — such as fees, timing, and risks — before submitting any application. It makes the process feel much more manageable and clear.
Do I pay stamp duty when I buy a second property?
Yes. Anyone buying an additional residential property in England or Northern Ireland pays a stamp duty surcharge on top of standard rates. In 2026, that surcharge is 5% of the full purchase price.
Stamp duty surcharge example (England)
Second property purchase price: £300,000
Standard stamp duty: approx. £2,500
5% surcharge on full purchase price: £15,000
Total stamp duty payable: approx. £17,500
Compared to £2,500 for a standard home mover at the same price. The surcharge applies even if you intend to sell your first property later.
If you sell your previous main residence within three years of buying the new property, you may be able to reclaim the surcharge. This does not apply to buy-to-let purchases.
Scotland and Wales have equivalent surcharges under their own tax regimes.
Important: Stamp duty is due within 14 days of completion and is paid by your solicitor. Factor this into your deposit plan from the start — it is one of the most underestimated costs at completion.
What do lenders look at when you remortgage for a second property?
Across all three routes, lenders focus on four areas
What do lenders look at when you remortgage for a second property?
The more equity you retain across both properties, the wider your lender choice. Higher borrowing narrows options and increases rates. Most residential lenders cap equity release at 75–80% LTV. For buy-to-let, 75% LTV is the most common maximum.
Affordability is assessed across both properties simultaneously
Lenders assess if you can handle your existing mortgage, new loans, and commitments all at once. For second homes, both mortgages are stress-tested together.
In buy-to-let, rental income is key, but personal commitments are also evaluated.
Property purpose determines the mortgage product
A buy-to-let, a second home, a holiday property, and a property occupied by family are each treated differently. The wrong mortgage type for the intended use can cause the application to fail entirely.
Multiple properties increase lender scrutiny
Some lenders limit total mortgage exposure. Portfolio landlords, defined as owning four or more mortgaged buy-to-let properties, face additional underwriting requirements under PRA rules.
The most common mistake
Equity is the starting point. Not the whole picture.
Here’s the most common mistake I see.
A homeowner has £150,000 of usable equity. They plan to use £75,000 as a deposit on a buy-to-let.
What they haven’t checked: whether the rental income passes the lender’s stress test.
Rent must cover 125–145% of the mortgage payment at a stressed rate. It doesn’t. The buy-to-let borrowing reduces, the deposit must increase, and the deal no longer works.
Equity got them to the table. Rental income sent them home.
Structure matters more than equity alone. The right conversation happens before any application, not after
When this works well
Applications that proceed smoothly tend to share the same characteristics:
- Strong equity remains in the existing property after borrowing
- Income comfortably supports both properties — or rental income is realistic and well-evidenced
- Stamp duty has been factored into the deposit plan from the start
- The property type and intended use match the correct mortgage product
When it often does not work
Most applications that fall over do so for the same reasons:
- Existing borrowing is already stretched
- Affordability across both mortgages is tight
- Rental assumptions are optimistic and do not pass lender stress tests
- The stamp duty surcharge has not been budgeted for
- The plan relies on selling the first property to fund the second
Thinking about using equity to buy another property?
The first question is not whether you can. It is whether the structure works — across both properties, both mortgage applications, and all the costs involved.
Request a sense-check and we will tell you before you commit to anything.
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Frequently Asked Questions About Remortgages
Can I remortgage my house to buy another property?
Yes. The most common approach is to release equity from your existing property and use it as a deposit on the second. A separate mortgage is then needed on the new property, assessed on its own merits alongside your existing commitments.
How much equity do I need to buy a second property?
It depends on the property type and deposit required. Buy-to-let mortgages typically need a minimum 25% deposit. Second home mortgages usually require 15–25%. You also need to budget for the 5% stamp duty surcharge — it must be paid from cash and cannot be added to the mortgage.
If I pay the stamp duty surcharge and then sell my original home within three years, can I claim it back?
Yes, in most cases. If you pay the 5% surcharge and then sell your original main residence within three years, you may be able to reclaim it by filing an amended SDLT return with HMRC. This relief does not apply to buy-to-let purchases.
Can I use my home equity to buy a buy-to-let?
Yes. Releasing equity from your main residence to fund a buy-to-let deposit is common. The buy-to-let mortgage is then assessed primarily on expected rental income — which typically needs to cover 125–145% of the monthly mortgage payment at a stress-tested rate. See our full buy-to-let guide for how lenders assess this.
I’m moving home but want to keep my current property as a rental — how does that work?
This is let-to-buy. You remortgage your existing home onto a buy-to-let basis, release equity, and use that equity as a deposit for your new home. It involves two mortgage applications running simultaneously. Timing and sequencing matter. See our full let-to-buy guide for how both applications work together.
I’m mid-way through a fixed rate with early repayment charges — is there a way to rent out my property without switching products?
Possibly. You may be able to ask your existing lender for consent to let — permission to rent without switching to a buy-to-let product. Not all lenders offer this, and conditions apply, but it can avoid triggering an ERC if you are mid-fix.
Does the Renters’ Rights Act 2026 affect buy-to-let mortgages?
It may. The abolition of Section 21 no-fault evictions from May 2026 has prompted some lenders to review buy-to-let criteria. The market is still adjusting. If you are considering a buy-to-let purchase in 2026, get current advice on lender appetite before proceeding.
Return to the Remortgage Guide
For a full overview of remortgaging options and other common situations, see the main Remortgage Hub.
All mortgage products are subject to lender criteria, status, and affordability. Rates and product availability are subject to change. This page is for information only and does not constitute mortgage advice. Berks & Bucks Finance is FCA-regulated. Your home may be repossessed if you do not keep up repayments on your mortgage.