A place in the sun

If you’ve always dreamt of owning a home in the sun, then you may be considering buying a second home abroad for your own personal use with the flexibility to let out and generate an income if required. The team at ESPC Mortgages look at how re-mortgaging your current home is one of the best ways you can achieve this.

Re-mortgaging your home

One of the most effective methods of purchasing a holiday home in the sun is  re-mortgaging your current residential UK property and using the proceeds to purchase the second home outright by a combination of equity and savings if required.

Low mortgage rates

This has the advantage of utilising current UK residential mortgage rates which are at a historically low level, particularly where there is substantial equity in the property. 

Repayments

We would normally recommend any mortgage is arranged on a capital and interest repayment basis to ensure the mortgage is repaid by the end of the term. In some circumstances however it may be possible to arrange the mortgage on an interest only basis with repayment of the loan coming from the sale of other assets such as property or investment portfolio, but this needs careful consideration and would not be suitable for all clients.

Flexibility

Having no mortgage on the second property does provide a very flexible approach as clients are free to use the property for their own use. It also frees you up to rent out the property for holiday lets if you wish, without meeting conditions that a lender would impose if the mortgage was on the second property.

Risk

As the mortgage is secured on your residential property you should remember your home is at risk if you do not keep up repayments on the mortgage.

ESPC Mortgages

As independent mortgage advisers, ESPC Mortgages can help with all aspects of understanding your budget, applying for a mortgage and dealing with the relevant insurance requirements. Give them a call on 0131 253 2920.

The initial consultation with an ESPC Mortgages adviser is free and without obligation. Thereafter, ESPC Mortgages charges for mortgage advice are usually £395 (£345 for first-time buyers). YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON A MORTGAGE OR OTHER LOANS SECURED AGAINST IT.

The information contained within this website is subject to the UK regulatory regime and therefore restricted to consumers based in the UK.

The Financial Ombudsman Service is available to sort out individual complaints that clients and financial services businesses aren’t able to resolve themselves. To contact the Financial Ombudsman Service, please visit www.financial-ombudsman.org.uk.

ESPC (UK) Ltd is an Appointed Representative of Lyncombe Consultants Ltd which is authorised and regulated by the Financial Conduct Authority.