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Second home mortgages

The Society will consider lending for both remortgages and purchases on second residential homes for personal use such as homes located nearer a workplace for part-time occupation by the borrower and private holiday homes.  The maximum LTV is 80%.

The Society will also consider lending for both remortgages and purchases on second residential homes used to house dependent relatives.  Release of the advance monies will be conditional on the family member(s) obtaining independent legal advice regarding their rights of occupation and certification from the legal adviser in the Society’s prescribed format that this advice has been given will be required.

There must be no tenancy created or in place, and the occupier must pay no rent or any other financial consideration to the borrower in respect of occupancy of the property.  The maximum LTV is 75%.

In all instances, affordability will be carefully assessed taking into account all mortgage payments and the associated costs of running more than one household.  The product selected must be from the Tailored Approach range.

Free standard administration or legal fees for remortgages will not apply to second home mortgages.  Please see the Solicitors/Licensed conveyancers acting for the borrower section of this guide for confirmation of the eligibility criteria for entry onto the Society’s Mortgage Panel.

Posted in: Guide to Terms & Underwriting