You have made the decision to take the plunge and go for a second home. But you are going to need a mortgage. How do you go about finding one?
The first requirement is to find someone who really knows the situation and understands the special requirements of a second home mortgage. You have a number of options.
* Your existing lender. For many people this is the first port of call. You already have a relationship with them and it is often easier to stick with the familiar. The thing to remember is that the fact that they have provided a mortgage on your first home doesn't mean that they have the expertise to help you with the ins and outs of a second home mortgage. They may not be the most suitable if they don't normally do this sort of lending. * The Yellow Pages. Many people start their search for a lender in the Yellow Pages. There are certainly plenty of providers listed there. The problem is that most of them don't make it clear in their ads whether they actually provide second home mortgages or not. Phoning them all to find out can be extremely time consuming - and expensive!
* The Internet. Of course this is an increasingly popular way of looking for a second home mortgage. If you find a possible lender you can fill in a form and in many cases you can obtain an ""instant"" quote. And there is no limit to the number of quotes you can obtain, so you can compare them. It is tempting to take what appears to be the most favourable quote and run with it. But of course what you have to remember is that the quote is actually provisional - they don't know anything about you or your circumstances when they provide it. All your information has to be checked out and the quote may well change.
* Independent mortgage broker. This is another option you can use. There are two advantages of using an independent mortgage broker for advice on your second home mortgage. First, he or she can gather a full understanding of your situation BEFORE recommending a product that will meet your exact needs. So there are no ""provisional"" quotes or acceptances - you know that the quote you receive is accurate. Secondly, the broker has access to a vast array of lenders and can select the one that is right for you - so you don't have to waste any time hunting around.
A second home mortgage is a major commitment. You need to be sure you get the best possible advice, so that you can find the product that best meets your needs
About the author: Sean Horton is a Director of
Holiday Let Mortgages
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