It’s more common than you might think for someone to want a second residential mortgage. Whether you’re moving in with a partner, buying a second home for work, or supporting a family member, there are a range of reasons people explore this option.
But is it actually possible to have two residential mortgages and how does it work?
Can you legally have two residential mortgages in Coventry?
Yes – it is possible to have two residential mortgages in Coventry at the same time, though lenders will want to understand why you need a second home and whether you can afford both mortgages.
While the idea might sound unusual, it’s more common than people realise. In certain circumstances, lenders are open to approving a second residential mortgage – as long as your reasons are genuine and you meet their criteria. The key thing is that each mortgage must be for a property you intend to live in, rather than rent out.
It’s different from owning a buy to let. With two residential mortgages, both homes are usually classed as your primary or main residences, depending on how you use them. Lenders will assess each case carefully and may ask for additional documents or evidence to support your application.
Why might you need a second residential mortgage in Coventry?
There are a number of reasons someone might consider taking out a second residential mortgage, and in many cases, lenders are open to it when the situation makes sense.
A common example is when you’re moving home in Coventry to live with a partner but want to keep your existing property. Whether you’re not ready to sell or plan to keep it for future use, a second mortgage gives you the flexibility to own two homes.
Some homeowners also look at a second mortgage if they spend time working in another part of the country. Owning a second home closer to work can ease long commutes and give you more balance in your day-to-day life.
Supporting family is another factor. You might want to help a child take their first step onto the property ladder, or you may be providing a home for an elderly parent to live in independently.
There are also cases where personal circumstances change, such as a relationship ending. In these situations, a second mortgage can help one person move forward without needing to sell the original home straight away.
What will lenders look at when I apply?
If you’re applying for a second residential mortgage in Coventry, lenders will look closely at your financial situation and the reason behind the new application. The key question they’ll want answered is whether you can comfortably afford both sets of mortgage payments.
They’ll start by reviewing your income and outgoings, just like they would with your first mortgage. This includes any existing commitments such as loans, credit cards, and of course, your current mortgage. They’ll also assess how much of a deposit you’re putting down and whether it meets their criteria.
Credit history is another factor. If your track record of managing credit is strong, that will work in your favour. Any recent missed payments or heavy borrowing could make it harder to get approved.
Finally, lenders will want to know how you plan to use both homes. If you’re planning to live in both properties at different times, or keep one as your main home while using the other for work, make sure this is clear from the start. Being upfront about your plans will help avoid any confusion and improve your chances of success.
Do you need a bigger deposit for a second mortgage in Coventry?
When applying for a second residential mortgage in Coventry, the deposit you’ll need can be a little higher than what you might have paid on your first home. While every lender sets their own criteria, most expect at least 15 to 25 percent of the property’s value, and sometimes more, depending on your circumstances.
If you’re applying for a second mortgage while still paying off your current one, lenders may view it as a slightly higher risk. That’s why a larger deposit can help improve your chances of securing a better deal and shows the lender you’re serious about the purchase.
Your affordability will also play a role. A mortgage advisor in Coventry can help you work out what level of deposit might be expected in your situation and guide you through the options.
If you’ve built up equity in your existing home, you may also be able to remortgage to release equity in Coventry to help fund your new deposit. This is something we regularly help clients explore when providing second mortgage advice in Coventry.
How does stamp duty work on a second home?
When buying an additional property, such as a second home or a second residential mortgage, you’ll usually need to factor in additional stamp duty costs. The government will usually apply a higher rate of stamp duty to second properties – this includes holiday homes, second residences, and buy to let properties.
The exact amount you’ll pay can vary depending on where you are in the UK, the value of the property, and your personal circumstances. Rules and thresholds do change from time to time, so it’s worth checking the most up-to-date guidance or speaking with a mortgage advisor in Coventry who understands the latest regulations.
If you’re unsure whether the extra stamp duty applies to you or how much it might be, we can help you find the answers and make sure everything is factored into your mortgage application.
Can you rent out one of the properties?
If you’re thinking about renting out one of your residential properties, it’s important to understand how this affects your mortgage. Residential mortgages are designed for owner-occupiers, so if your plans change and you decide to let out the property, you’ll need permission from your lender.
In many cases, this means applying for consent to let. Some lenders are happy to offer this if the reason is temporary – for example, if you’re working away or moving in with a partner. Other times, you may need to switch to a buy to let mortgage in Coventry if the arrangement becomes more permanent.
Letting out a home without informing your lender can breach the terms of your mortgage. If you’re unsure, our mortgage advisors in Coventry can talk through your options and help you understand what’s needed to stay on the right track.
Date Last Edited: May 30, 2025
