We hear from lots of customers who want to know about mortgage rates on second homes, specifically how lenders decide which ones to offer and how to get the best ones.\r\n\r\nThese are two of the most common questions we hear on this topic, but we\u2019ve received dozens of other queries too, so we\u2019ve compiled this guide to mortgage rates for second homes.\r\n\r\nYou\u2019ll find the following topics covered below\u2026\r\n<ul>\r\n \t<li><a href="#calculate-rates">How do lenders calculate mortgage rates on a second home?<\/a>\r\n<ul>\r\n \t<li><a href="#rate-difference">Are interest rates different for second home mortgages?<\/a><\/li>\r\n \t<li><a href="#term-length-affect-rates">Does term length affect interest rates on second home mortgages?<\/a><\/li>\r\n \t<li><a href="#current-rates">What are the current mortgage rates for second homes?<\/a><\/li>\r\n<\/ul>\r\n<\/li>\r\n \t<li><a href="#best-rates">How do I get the best rates on second home mortgages?<\/a><\/li>\r\n \t<li><a href="#best-way-compare">What is the best way to compare second home mortgages?<\/a><\/li>\r\n \t<li><a href="#second-home-expert">Speak to an expert about 2nd home mortgage rates<\/a><\/li>\r\n<\/ul>\r\n[feefo-banner]\r\n<h2 id="calculate-rates">How do lenders calculate mortgage rates for a second home purchase?<\/h2>\r\nMortgage interest rates on second homes are assessed in much the same way as mortgages for primary residences. When you are <a href="\/2nd-home-mortgages\/">getting a second mortgage<\/a>, the lender will decide which rates to offer based on the amount of risk they think the deal carries, and they will decide this by looking at the following factors:\r\n<h3>Your deposit\/equity<\/h3>\r\nAs a general rule, second home mortgages have higher deposit requirements than primary home mortgages as they usually come with a loan to value (LTV) cap set at 80%. This means you will need a deposit of at least 20%, but if you\u2019re able to put down more, the mortgage provider may be more willing to offer more favourable second house mortgage rates.\r\n\r\nBorrowers who hold substantial equity in their current home may also stand a better chance of landing the best second property mortgage rates as this diminishes the level of risk too.\r\n\r\nYou can read more about <a href="https:\/\/www.onlinemortgageadvisor.co.uk\/deposits\/deposit-for-second-mortgage\/">second property mortgage deposits<\/a>.\r\n<h3>Your credit rating<\/h3>\r\nHaving bad credit on your file often means a specialist lender is required to get the best deals, and this is certainly true when it comes to second home mortgage interest rates.\r\n\r\nAdverse credit can be more restrictive where second homes are concerned, as the level of risk is often higher due to the borrower having two mortgages to service.\r\n\r\nThat said, the expert advisors we work with have access to specialist bad credit lenders who may consider taking the age and severity of your credit problems into account when deciding which interest rate to offer for your second home mortgage.\r\n\r\nYou can read more about <a href="https:\/\/www.onlinemortgageadvisor.co.uk\/bad-credit-mortgages\/how-to-get-a-mortgage-with-bad-credit\/">bad credit mortgages<\/a>, or better yet, make an enquiry to speak with one of the advisors we work with about the rates you\u2019d qualify for.\r\n<h3>Your age<\/h3>\r\nGetting the best mortgage rates on a second home can be trickier if you\u2019re buying on in <a href="https:\/\/www.onlinemortgageadvisor.co.uk\/mortgages-for-pensioners\/">later life<\/a>, due to your choice of lenders being somewhat slimmer.\r\n\r\nCertain mortgage providers have upper age limits and won\u2019t lend to anyone over 75. Others stretch to 85 and a minority will lend to a retiree of any age, as long as they\u2019re confident the customer can keep up with their mortgage payments during their twilight years.\r\n<h3>The property type<\/h3>\r\nThe mortgage rate you\u2019re offered for a second home could also be impacted by the type of property you\u2019re buying. To be specific, a specialist lender might be required if your second home includes non-standard construction, such as a <a href="https:\/\/www.onlinemortgageadvisor.co.uk\/property-types\/thatched-properties\/">thatched roof<\/a> or <a href="https:\/\/www.onlinemortgageadvisor.co.uk\/property-types\/timber-framed-property\/">timber frame<\/a>.\r\n\r\nRead more about <a href="https:\/\/www.onlinemortgageadvisor.co.uk\/property-types\/non-standard-construction\/" target="_blank" rel="noopener noreferrer">non-standard construction properties in our article<\/a>.\r\n<h3>Income and affordability<\/h3>\r\n<a href="https:\/\/www.onlinemortgageadvisor.co.uk\/mortgage-affordability\/mortgage-affordability-checks\/" target="_blank" rel="noopener noreferrer">Affordability checks<\/a> can be more stringent for second home mortgages because the lender needs to be confident that you\u2019re capable of services two mortgages at once, for the duration of their terms. Most providers cap their lending based on 3-4x the borrower\u2019s annual salary, some stretch to x5 and a minority x6, under the right circumstances.\r\n\r\nIf you\u2019re looking for <a href="https:\/\/www.onlinemortgageadvisor.co.uk\/self-employed-mortgages\/" target="_blank" rel="noopener noreferrer">self-employed mortgages<\/a> or want to <a href="https:\/\/www.onlinemortgageadvisor.co.uk\/income-types\/using-commission-and-bonus-income-for-mortgages\/">apply for a mortgage with bonus income<\/a>, overtime or commission factored in, a specialist lender might be called for.\r\n\r\nThe more confident the lender is that your declarable income will cover the mortgage payments, the more likely they are to offer their top second home mortgage rates.\r\n<h3 id="rate-difference">Is there a mortgage rate difference for second homes?<\/h3>\r\nWhile the interest rate for a mortgage on a second home is assessed in much the same way as for a primary mortgage, interest rates can be higher for second homes as some lenders will be more cautious where a borrower with two home loans on their plate is concerned.\r\n<h3 id="term-length-affect-rates">Does the term length affect 2nd property mortgage rates?<\/h3>\r\nThe answer is generally a no. A 30-year mortgage on a second home would usually come with the same rates as a 15-year mortgage on a second home if the same applicant was applying for them. Term length is not typically a factor residential lenders consider when deciding which rates to offer, but it will affect the overall cost of a second home mortgage.\r\n\r\nTaking a mortgage over a shorter term means higher monthly payments while stretching the loan out over a longer period means paying less each month but more interest overall.\r\n\r\nSo, if you\u2019re looking for a cheap second home mortgage, this is something to consider.\r\n<h3 id="current-rates">What are the current mortgage rates for second homes?<\/h3>\r\nWe often hear questions along these lines, and we always tell customers that providing them with a specific interest rate percentage is pointless, as rates are forever in flux and can change at any time. The second home mortgage rates today might be different tomorrow.\r\n\r\nThe most important thing you need to know about 2nd home mortgage interest rates is how to make sure you get the best ones available.\r\n\r\nRead on to find out\u2026\r\n<h2 id="best-rates">How do I get the best mortgage rates for a second home deal?<\/h2>\r\nThe key to getting the best mortgage deal for a 2nd home is by meeting the eligibility requirements at as many lenders as possible (see the section titled \u2018How do lenders calculate mortgage rates for a second home purchase?\u2019 at the beginning of this article for general criteria information) and having access to the entire market.\r\n\r\nApproaching multiple lenders is not recommended as this is time consuming, plus making too many applications can negatively impact your credit report. Using rates tables online is also not advised, as these often give prominent placement to sponsored products and won\u2019t necessarily show you deals that are tailored to your needs and circumstances.\r\n\r\nUsing a whole-of-market broker is the right way to ensure you end up with the best mortgage deal to buy your second home. The advisors we work with can offer you expert advice and pair you with the lender best positioned to provide favourable rates.\r\n<h2 id="best-way-compare">What is the best way to compare second home mortgage deals?<\/h2>\r\nAs we mentioned in the previous section, online rates tables are not the best way to carry out a second home mortgage comparison. Many of them give prominent placement to sponsored products and don\u2019t tailor the deals they flag up to individual customers.\r\n\r\nA better option is to make an enquiry and have one of the whole-of-market advisors we work with search the entire market and compare deals on your behalf. Not only can they provide you with bespoke advice, they will introduce you to the lender best positioned to offer favourable rates to a customer with your specific needs and circumstances.\r\n<h2 id="second-home-expert">Speak to an expert on 2nd home mortgage rates today<\/h2>\r\nIf you\u2019re still wondering how to find the best second home mortgage deals and want to speak to an expert for the right advice, call Online Mortgage Advisor today on 0808 189 2301 or <a href="https:\/\/enquiries.onlinemortgageadvisor.co.uk\/match-me-with-a-specialist-broker">make an enquiry<\/a>.\r\n\r\nThen sit back and let us do all the hard work in finding the broker with the right expertise for your circumstances.\u00a0They can offer you bespoke advice and connect you with the best mortgage lenders for 2nd home borrowers - we don\u2019t charge a fee and there\u2019s absolutely no obligation or marks on your credit rating.