Introduction
With rising house prices over the past decade, many homeowners in the UK now find themselves sitting on substantial equity. A common question that follows is: Can I remortgage my house to buy another property?
The short answer is yes — thousands of people do this every year, whether to buy a holiday home, help a family member, or build a buy-to-let portfolio.
However, getting it right requires a solid understanding of how equity release works, what lenders look for, and the pros and cons of using your home as leverage for new investments. This guide breaks down everything you need to know.
How Remortgaging to Buy Another Property Works
Remortgaging allows you to replace your existing mortgage with a new one – often at a higher amount – freeing up cash from the equity you’ve built in your home.
That released cash becomes your deposit for another purchase.
Example
- Current property value: £350,000
- Existing mortgage balance: £180,000
- Maximum LTV allowed by new lender: 80% (of £350k = £280,000)
- Usable equity for deposit: £100,000
That £100,000 can be used as a deposit for another home or investment property.
Reasons to Remortgage for Another Property
People choose this route for several reasons:
- Buying a buy-to-let property
One of the most common motivations is to enter the rental market. Many first-time landlords use equity in their main home rather than savings.
- Investing in a holiday home
A second property for personal use (or short-let income) can be purchased with equity from your main residence.
- Helping family onto the property ladder
Parents frequently release equity to help children with deposits.
- Upsizing or downsizing
If you’re moving but want to keep your current home as an investment, remortgaging can support this transition.
What Lenders Look For
Even with plenty of equity, approval isn’t guaranteed. Lenders assess several factors before agreeing to a higher loan amount.
- Income and affordability
Lenders need reassurance that you can afford your current mortgage and the new borrowing. They stress-test your finances based on future interest rate increases.
- Loan-to-value restrictions
Most lenders will allow you to borrow up to 75–85% of your home’s value, depending on your income and credit profile.
- Credit history
A clean, stable credit record increases your borrowing options and may secure you lower interest rates.
- Intended use of funds
Buying a buy-to-let or second home is generally acceptable.
Buying a commercial property may require specialist lenders.
Benefits of Remortgaging to Buy Another Property
- Cheaper than other borrowing methods
Mortgage interest rates are often lower than personal loans or bridging finance.
- Leverages existing equity
You don’t need years of savings – your property does the heavy lifting.
- Potential for long-term investment gains
Whether rental yield or long-term appreciation, property remains a popular investment choice.
- Can consolidate finances
Some homeowners combine existing property debts for simpler management.
Risks to Consider
- Your home is at greater risk
Increasing borrowing means bigger monthly repayments. If you cannot keep up, your main residence could be at risk of repossession.
- Rising interest rates
Borrowing more money exposes you to potential rate hikes. Even fixed-rate deals eventually expire.
- Rental market fluctuations
If buying a BTL, void periods or falling rents can impact cash flow.
- Reduces your financial safety cushion
Releasing too much equity can leave you vulnerable in emergencies or during property downturns.
Alternative Ways to Buy Another Property
If remortgaging isn’t ideal, consider:
- Further advance: Borrowing more from your current lender without switching.
- Second-charge mortgage: A separate loan secured against your home.
- Using savings or investments: Avoids increasing mortgage debt.
- Joint borrower sole proprietor mortgages: Helpful for family-assisted purchases.
Is Remortgaging to Buy Another Property a Good Idea?
It can be – provided the numbers work. Many successful landlords and investors use equity release as a growth strategy. The key is understanding the risks and having a realistic plan for long-term affordability.
Conclusion
Remortgaging your home to buy another property is absolutely possible and can be a powerful strategy for investing, supporting family, or upgrading your lifestyle.
However, it requires careful planning and a clear understanding of affordability, borrowing limits, and potential risks.
A mortgage advisor can help you calculate how much equity you can release, compare lenders, and structure your new borrowing in the most efficient way.
THINK CAREFULLY BEFORE SECURING OTHER DEBTS AGAINST YOUR PROPERTY. YOUR PROPERTY MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE OR ANY OTHER DEBT SECURED ON IT.
Most Buy to Let Mortgages & Commercial are not regulated by the Financial Conduct Authority.
Bransgroves Mortgage Brokers is a trading name of Just Mortgages Direct Limited which is an appointed representative of The Openwork Partnership, a trading style of Openwork Limited which is authorised and regulated by the Financial Conduct Authority.
Approved by The Openwork Partnership on 08/12/2025
