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So, you’re thinking about buying a second home — maybe a holiday retreat by the coast, a place closer to family, or simply a smart investment for the future. Whatever your reason, it’s worth knowing that getting a mortgage for a second property works a little differently from your main residence.
Lenders take a closer look at your affordability, since you’ll be managing two sets of mortgage payments, and deposit requirements can sometimes be higher. In many cases, you’ll also need to fund the deposit yourself, rather than relying on a gift or external source.
At Strive, we specialise in second home mortgages and can guide you through exactly what to expect — starting with how much deposit you might need.
What Is the Minimum Deposit for a Second Home Mortgage?
In theory, you can buy a second home with as little as a 5% deposit, but in reality, most lenders ask for 15–25%. A few may stretch to 90% LTV (10% deposit), but it depends on your overall financial position, existing commitments, and the lender’s appetite for risk.
Three main factors influence how much deposit you’ll need:
1. Lender Criteria
Each lender sets its own maximum loan-to-value (LTV) for second homes. While some go up to 90% or even 95%, others cap at 75% or 80%. These caps depend on your income, credit history, and whether the lender allows aggregate borrowing across two properties.
2. Affordability
You’ll need to prove you can afford both mortgages and all ongoing costs. For example:
If you’re buying a £500,000 property with a 10% deposit (£50,000), you’ll need to borrow £450,000. Depending on your other financial commitments, that could require an income of around £90,000 or more.
Each lender approaches affordability differently. Some take a strict income multiplier (e.g. 4.5–5× income across both homes), while others use a payment-based approach, assessing what you can comfortably afford each month. The difference between those models can be huge.
How Aggregate Borrowing Limits Can Restrict You
Some lenders apply a strict aggregate borrowing cap across both properties — usually a set income multiple, such as five times your annual salary.
For example, if you earn £100,000 per year, your total borrowing across both homes might be capped at 5 times inocme – £500,000. If you already owe £400,000 on your current home, that would only leave £100,000 available for the second property — even if your income and monthly budget could comfortably support more.
Other lenders don’t work like this. Instead of applying a single blanket multiple, they assess your overall affordability based on income, outgoings and the actual payments on both mortgages. This approach can allow you to borrow significantly more, especially if your existing mortgage payments are relatively low or you have strong disposable income.
Here’s an example of how much second home borrowing could vary for someone earning £100,000 per year with an existing £400,000 mortgage costing £1,600 per month:
| Lender | Estimated Maximum Second Home Loan |
|---|---|
| Accord | £424,962 |
| West Brom Building Society | £422,414 |
| Suffolk Building Society | £400,000 |
| Kent Reliance | £358,055 |
| Gen H | £276,604 – £334,644 |
| Newcastle Building Society | £311,494 |
| Clydesdale Bank | £295,488 |
| Santander | £215,697 – £241,673 |
| Halifax | £225,550 – £231,880 |
| Leeds Building Society | £156,254 |
| Nationwide | £150,000 |
| Barclays | £44,961 |
That’s a difference of more than £200,000 between two lenders — showing why using a whole-of-market broker matters.
3. Property & Risk Profile
The property itself can impact how much deposit you’ll need. For example, lenders often require higher deposits for:
- New-build homes (especially flats)
- Foreign nationals or non-UK residents
- Applicants with past credit issues
- Properties used as holiday homes or short-term lets
These risk factors can push minimum deposits up to 25–30%.
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Minimum Deposits for second homes by Lender
Below are the latest second-home mortgage limits across major lenders.
| Maximum LTV | Minimum Deposit | Lenders |
|---|---|---|
| 95% | 5% | Kent Reliance |
| 90% | 10% | Bank of Ireland, Bluestone Mortgages, NatWest, Barclays, Cumberland Building Society, Metro Bank |
| 85% | 15% | West Brom Building Society, Clydesdale Bank, HSBC, Buckinghamshire Building Society, Suffolk Building Society, Santander, Scottish Building Society, Mansfield Building Society, Bath Building Society, Halifax, Virgin Money, Atom Bank, The Co-operative for Intermediaries |
| 80% | 20% | Skipton Building Society, Leek Building Society, Marsden Building Society, Melton Building Society, Market Harborough Building Society, Monmouthshire Building Society |
| 70% | 30% | Family Building Society, Darlington Intermediaries |
Most lenders sit in the 80–85% bracket, with only a handful willing to stretch to 90% or 95%.
Speak to a mortgage expert today for the best deal.
Deposit Source Requirements for Second Home Mortgages
Most lenders require that your deposit for a second home comes from your own savings or released equity, not a gift. Some will accept part-gifted funds, but many insist that the entire deposit must be self-funded. This is especially common when purchasing a second residential or holiday home, as lenders view it as a higher-risk commitment.
Aggregate Loan-to-Value (LTV) Caps
Some lenders don’t just look at the LTV on your current home — they consider your combined borrowing across both properties.
For instance, if you have an 85% mortgage on your current home, a lender may limit your total combined borrowing to 85% of both property values together. That could mean needing a higher deposit for your second home.
Example:
- Current home worth £400,000, mortgage £340,000 (85% LTV)
- Second home worth £300,000
- If aggregate LTV cap is 85%, you can only borrow £595,000 total — leaving £105,000 you’ll need to fund as deposit
Buy to Let vs Second Home
If the second property is being rented out, you’ll need a buy-to-let mortgage, not a residential one.
Buy-to-let products usually require a minimum 25% deposit, and the mortgage is assessed on rental income, not your personal salary.
So while second home loans focus on affordability and deposit from own funds, buy-to-lets are more about the property’s earning potential.
Additional Costs to Consider
As well as saving for your deposit, it’s important to budget for the additional costs of buying a second home.
The biggest one is Stamp Duty Land Tax (SDLT) — you’ll pay the standard rate plus an extra 5% surcharge on any second property.
You can estimate exactly what you’ll owe using our in-house Stamp Duty Calculator, or check the official UK Government guidance on residential property rates for full details.
Other costs to keep in mind include:
- Valuation and survey fees
- Legal and conveyancing fees
- Mortgage arrangement and broker fees
- Insurance and ongoing maintenance costs.
Factoring these in early helps you understand the true cost of owning a second home — not just the deposit and mortgage payments.
How Strive Can Help
At Strive, we make the complex simple. We know which lenders are comfortable with higher LTVs, which allow gifted deposits, and who applies aggregate borrowing limits.
Whether you’re buying a family retreat, a holiday home, or simply using your equity wisely, we’ll help structure your application to give you the best chance of approval — and make sure your deposit and affordability are working in your favour.
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Jamie Elvin
Jamie is an expert in all things mortgages, and our most experienced broker. Connect with Jamie and get started to see how Strive Mortgages can help you.
