If you’ve already got a mortgage and you’re thinking about buying another property or borrowing more, you might be wondering if it’s even possible. The answer is yes. As long as you meet the lender’s criteria, including passing their affordability checks and a credit assessment, you can apply for a second mortgage.

This is more common than many people think, and there are several different reasons why you might want to do it.

What are second mortgages used for?

There’s no one-size-fits-all reason behind taking on a second mortgage. Some people are looking to raise money through their existing home, while others might be buying a rental property or moving house and choosing not to sell their current place. You might even be named on an existing mortgage with someone else but want to buy on your own.

Whatever the circumstances, our mortgage advisors in Birmingham can help explore what options are available to you and check whether a second mortgage is the right approach.

Raising Funds by Releasing Equity

After five or more years in your home, you’ve probably built up a fair amount of equity. One way to unlock this is by speaking to your lender about releasing equity in Birmingham. This is where you borrow additional funds through your current mortgage provider.

Homeowners often use the money to cover home improvements or invest in a second property. If you’re considering putting it towards a new deposit, you’ll need to show the lender that you can manage the repayments on both mortgages. The amount you can borrow depends on how much equity you’ve built and your personal affordability.

We can help you understand what’s possible and check whether your current lender or another one might be a better fit based on your plans.

Second Mortgages for Buy to Let

If you’re planning to become a landlord, or you’re adding another property to your portfolio, a second mortgage is typically the route you’ll need to take. You’ll be expected to put down a deposit, which is usually somewhere around 25%, and you’ll also need to show that you can manage the mortgage payments even if the property isn’t rented out straight away.

Once tenants are in place, the rent usually covers the mortgage, but there will be upfront costs and potential gaps between tenants to consider. A good buy to let mortgage in Birmingham gives you room to work with and should reflect your short and long-term goals.

If you’re new to buy to let, this is where proper advice really counts. We can explain the process clearly and help you avoid any of the usual mistakes first-time landlords often make.

Second Mortgage for a Let to Buy

A let to buy mortgage in Birmingham is a popular choice if you’re moving home but want to keep your existing property. It works by switching your current mortgage onto a buy to let basis, then using the equity built up in that home as a deposit for your next one.

This allows you to purchase a new residential home to live in, while continuing to benefit from the value of the property you already own. Some landlords build up their portfolio this way, particularly when upsizing, and it can work well if you’ve got solid equity and can manage both loans.

What if you’re buying a second home?

Not all second mortgages are about investments. Some people apply for one to purchase a second home for personal use. This might be a place near the coast for family holidays or a weekday property closer to work.

As long as you can afford both mortgages and the lender is happy with the purpose of the second home, this is usually quite straightforward. The process is similar to applying for your first mortgage, but you’ll need to clearly show that you can cover both sets of payments.

Already on a mortgage and want to take out another?

It’s not uncommon to be named on an existing mortgage while also wanting to buy somewhere else. This often happens after a separation or divorce, when one party moves out but remains financially tied to the property.

Removing yourself or your ex from a mortgage isn’t always easy. Both parties need to agree, and the person staying in the property must prove they can afford the mortgage on their own. Until that happens, it can affect your credit position and limit your borrowing ability.

Being financially linked to someone else can also have an impact if their credit history isn’t strong. If you find yourself in this position, it’s worth looking into whether the connection can be changed. Our team can check your credit position and help you plan your next steps.

Date Last Edited: May 12, 2025