Mortgage expert Andrew Milnes on whether buying a second property is right for you

Firstly, ask why you are buying a second property. Let’s take a look at the most common reasons: Commuting: If you work in one city but live in another, a second home can provide a more comfortable and convenient base.

Holiday home: A seaside escape or country cottage can offer a much-needed break from everyday life for you and your family.

Investment: While not the primary focus, some people see a second home as an investment opportunity. This often involves letting out the property for significant periods.

From a mortgage lender's perspective owning a second home is a significant financial commitment and, like any property purchase, is subject to affordability.

You must be able to comfortably manage the mortgage payments for your current and second properties, as well as additional costs for both, such as utilities, maintenance, and council tax.

With any second property purchase, it’s natural for a lender to be wary regarding your intentions, especially if the area you’re purchasing in is popular with tourists.

It’s also highly likely that, even if you don’t intend to let out the property to tourists, you may well end up doing so to friends and family.

If you are considering letting out your second home, either part or full-time, it’s essential to be clear about your intentions from the outset. Some lenders offer specialist products for properties that are used partly as a home and partly as a rental.

However, if you plan to let out the property for most of the year, it might be categorised as a buy-to-let, which comes with different lending criteria.

With so much to consider and complex criteria to consider, speaking to an adviser really is worth its weight in gold here.

The rise of short-term letting platforms, such as Airbnb, has made it easier for people to generate income from their second homes.

More recently, lenders have launched products that allow homeowners to rent out their properties for short-term use through approved lettings platforms, such as Airbnb.

However, it can depend on how long you have been with the lender, how long you have held the mortgage for, or if you are planning to rent the whole property or just a room.

Consent to let is an agreement from the lender that they are happy for you to rent the property, though this can come with a fee.

With a second home being such a significant financial investment, it is important to weigh up the potential benefits against the costs involved.

Seeking advice from a mortgage adviser is essential. They can help you understand options and assess your finances to ensureit something you can afford.

Andrew Milnes is business principal at the Mortgage Advice Bureau, Bingley