Can I Use Equity Release To Buy A Second Home?

If you’re wondering whether you can use equity release to buy a second home, we’re covering this question below.

If you’re thinking of purchasing a second home, you’ll want to consider how you’re going to finance it. Some may take the route of acquiring a buy-to-let mortgage, while others may choose to remortgage. However, if you’re over 55, there may be another option available to you. This includes equity release.

The good news is that Equity Release CAN be used to purchase a new home. Whether you’re looking to buy as an investment, as a holiday home or as an intended forever home for your retirement, equity release is a viable option for many. Just remember to factor in all your extra costs of buying a second home, such as stamp duty.

It is recommended that you spend rather than save your equity release money, this is because you could be taxed on any interest you accrue from this type of saving.

How to purchase a holiday home using equity release?

Using the value of your current home to pay for a new house could be a dream solution for many over 55s who are starting to think about their retirement.

You will be required to live in your primary residence for at least six months of the year. Also, to prevent having more than one mortgage, you may want to consider paying for your holiday home outright.

If you’re looking to buy a second home using equity release, you should speak to a mortgage advisor. Contact Agentis today to book your free initial consultation.

As ‘whole of market’ mortgage brokers, we can give you access to some of the best equity release mortgages.