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By Pete Mugleston | Mortgage Advisor

Pete has been a mortgage advisor for over 10 years, and is regularly cited in both trade and national press.

Updated: 25th August 2020*

We get lots of enquiries from people who want to understand exactly how a second home mortgage calculator works for properties in the UK and what information you can learn from them.

Jump to our calculator journey to establish what you can afford, the costs and which of the best deals you’ll qualify for.

To answer these questions we’ve put together a comprehensive guide covering:  

If you’d like to know more about getting a mortgage for a second home and how a calculator could help you.

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What is a second home mortgage calculator?

A mortgage calculator for a second home is a tool that can be used by mortgage brokers and lenders to work out how much you may be able to borrow and to give an indication as to what the mortgage repayments will be for the amount you need to borrow on a second home mortgage – i.e. a mortgage to purchase another home, rather than a remortgage or a 2nd charge mortgage.

Whilst all lenders will use their own calculator based on their specific in-house requirements, such tools aren’t exclusive to mortgage providers – mortgage applicants are free to try them out for themselves.

You can find these tools on many UK lenders’ or other online mortgage websites. However, bear in mind that they can only give you a rough idea about how much you can borrow and the potential rates on offer.

What do mortgage lenders look for?

If you’re looking to purchase a second home using a mortgage, it’s likely a lender will use a higher degree of scrutiny when assessing your mortgage application. A lender will want to establish that a second mortgage will not impact your ability to repay your first mortgage and vice versa.

When using an online mortgage calculator to work out what you may be able to borrow for a second home, most lenders will ask you for the following information when determining the amount they’d consider loaning to you:

  • What you’re using the second property for.
  • Purchase price of the second property.
  • Size of deposit.
  • Your income and outgoings.
  • Mortgage term.
  • How far away from your main residence is the second property?

When looking for a mortgage on a second home, if you use a calculator on a lender’s website it will usually be programmed in line with that lender’s in-house affordability criteria.

As each lender’s affordability criteria will vary, this may produce a range of different results based on the information you provide.

This is where we can help. The advisors we work with are whole-of-market and can tell you which 2nd property mortgage calculators used by lenders offer the most favourable terms.

For an accurate idea of what kind of deal you could get on a second home mortgage, call 0808 189 2301 or make a quick online enquiry. Remember, speaking to a broker before you apply could save you time and money in the long run.

How do I calculate the amount I can borrow on a second home mortgage?

There are estimation calculators on the internet to give you an idea but a mortgage provider will want to conduct their own affordability assessment as part of your application before confirming what this amount will be.

A lender’s in-house second mortgage calculator will usually give an indication based on a multiple of your income.

Most lenders will use 4.5x your salary, some may go up to 5x your salary and, in certain circumstances, a few will go even higher.

The table below illustrates how this may look:

Total Income4.5 x Income5 x Income6 x Income

The key difference for second mortgage finance is that what your primary mortgage is costing you will also be taken into consideration in order for a lender to be confident you can afford both.

Call 0808 189 2301 or make a quick online enquiry.

We’ll match you with one of the brokers we work with. They’ll be happy to answer your questions and provide you with an accurate idea of what lenders might be willing to lend on a second mortgage based on your own circumstances and affordability.

Second home mortgage rates

A second home mortgage calculator will be able to give you an indication of how much interest you’ll pay and most calculators will allow you to input your own rates.

However, because every lender will have a number of different offers and deals across a range of different types of mortgage lending, it’s difficult to be completely accurate. This is because you might opt for a deal with a different rate than the one used by the calculator to work out your monthly payments.

To give you an idea of the type of information a mortgage calculator can show you, the table below illustrates what you may pay back overall when buying a second house using a number of different interest rates, based on borrowing £100,000 over 25 years:

Interest RateMonthly PaymentPercentage
Call 0808 189 2301 or make a quick online enquiry.

How do I calculate the amount of deposit I’ll need for a second home mortgage?

Most lenders will require more substantial deposits (typically up to 25%) than for a first mortgage in order to satisfy their internal affordability criteria. Also, it’s not unusual for lenders to scrutinise how much equity is in your main residence when considering your application for a second mortgage.

Some lenders may want to see at least 15-20% equity in your main residence. However, as long as you have at least 10-15% deposit available for your second property purchase, other lenders may not be so concerned about the value of the equity in your first property. 

If you have sufficient equity in your main residence, some lenders may also allow you to use this equity to cover the deposit you require for your second home mortgage.

With a variety of different options available from many mortgage lenders, it’s a good idea to talk to a whole-of-market broker, like the ones we work with, who can access lenders across the whole UK to find the most competitive mortgage rates and deals available to you.

Call 0808 189 2301 or make an enquiry and we’ll match you with a broker who will be happy to help. The service we offer is free and there’s absolutely no obligation.

How can I find a reliable second home mortgage calculator online?

If you’re looking to buy a second house and want to use a mortgage affordability calculator you can find one on most lender’s websites and major financial hubs.

However, as all mortgage lenders use different criteria in the UK, the calculators they use will be tailored accordingly. The best way to get an accurate idea of how much you could borrow for a second home mortgage is to talk to a whole-of-market broker, like the ones we work with.

Speak to an expert about mortgages for second homes

Using a mortgage calculator when you’re starting to work out how much you might be able to borrow is one thing. However, relying solely on a mortgage calculator when looking to buy a second home is not recommended.

By seeking out professional advice from an independent whole-of-market mortgage advisor, borrowers can get reliable and accurate information, from which you can plan for a property you can afford.

Call 0808 189 2301 or make a quick enquiry. We’ll match you with an advisor who can answer all your questions and work with you to gather accurate information and tell you how much a customer with your profile could borrow for a second home mortgage.

The service we offer is free and there’s no obligation either.

Updated: 25th August 2020
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FCA disclaimer

*Based on our research, the content contained in this article is accurate as of most recent time of writing. Lender criteria and policies change regularly so speak to one of the advisors we work with to confirm the most accurate up to date information. The info on the site is not tailored advice to each individual reader, and as such does not constitute financial advice. All advisors working with us are fully qualified to provide mortgage advice and work only for firms who are authorised and regulated by the Financial Conduct Authority. They will offer any advice specific to you and your needs. Some types of buy to let mortgages are not regulated by the FCA. Think carefully before securing other debts against your home. As a mortgage is secured against your home, it may be repossessed if you do not keep up with repayments on your mortgage. Equity released from your home will also be secured against it.

Find out more about second home mortgages

Second Home Mortgages