Navigating the mortgage landscape when you already own a property can be complex. With terms like buy-to-let mortgages, equity release, and remortgage deals popping up, understanding your options is crucial. This article aims to provide expert advice on securing a mortgage when you have an existing property, touching upon the essential elements like mortgage rates, affordability checks, and more.

Damian Youell

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Types of Mortgages Available for Existing Property Owners

1. Remortgage

Often, property owners look to remortgage to secure a more competitive deal than their current mortgage deal. A remortgage broker can help you find a better interest rate, shorter mortgage term, or even additional borrowing potential for renovations or other expenses.

2. Buy-to-Let Mortgage

If you’re considering turning your current property into a rental, a buy-to-let mortgage is an option. Lenders calculate eligibility based on potential rental income rather than your annual income.

Equity release will reduce the value of your estate and can affect your eligibility for means-tested benefits

3. Equity Release

Another option is to opt for equity release, especially if you’re in an expensive or mortgage-free property. There are various types of equity release, such as lifetime mortgage and home reversion.

Equity release will reduce the value of your estate and can affect your eligibility for means-tested benefits

Key Factors to Consider

Credit Score

Your credit score will significantly impact the mortgage rates available to you. Poor credit history or late payments can narrow your options. However, specialist lenders and expert brokers often provide alternative credit options for applicants with credit issues.


An affordability check involves assessing your financial commitments, household income, and outstanding debt to determine your monthly repayments. Various online tools like affordability calculators can help you with preliminary calculations.

Property Type

The kind of property you have—whether residential, buy-to-let, or commercial—will affect your mortgage options. The property ladder has several steps, and knowing where you stand helps in making an informed decision.

Employment Status

Your employment status, whether you are in full-time employment or not, can influence lenders’ perception of your financial stability, affecting your level of borrowing and mortgage terms.

Application Process

  1. Consult a Mortgage Adviser: Given the complexity of the mortgage landscape, consulting with a mortgage adviser or an independent mortgage broker can be beneficial.
  2. Documentation: Prepare the necessary documents. This includes bank statements, evidence of rental income for buy-to-let properties, and credit reports. It’s worth noting that some lenders may have stricter criteria.
  3. Affordability Assessment: Lenders perform an affordability assessment that examines your financial obligations, credit commitments, and monthly repayments. This step is critical in determining your mortgage product eligibility.
  4. Choose a Mortgage Type: Based on your current circumstances and financial advice received, select the appropriate mortgage product.
  5. Apply: The last step is the application process, which, with complete confidence and proper guidance, should be a relatively simple process.

Fees and Additional Charges

  1. Arrangement Fee: For setting up the mortgage.
  2. Stamp Duty Land Tax: Payable on additional property purchases.
  3. Booking Fees: Sometimes applied by lenders.
  4. Advice Fee: If you’re consulting a financial adviser or mortgage adviser, this may apply.

Other Considerations

  1. Negative Equity: If the value of your current property has declined, you may face challenges in securing additional borrowing.
  2. Bridge Finance: If you’re considering buying a new property before selling the existing one, bridging finance could be an option.
  3. Debt Obligations: If you have existing financial commitments like credit card debt or other loans, consider how a new mortgage or extra borrowing will impact your debt repayments.
  4. Capital Repayment: Know the difference in cash flow between interest-only and capital repayment options for any new mortgage or additional mortgage.

Expert Tips

  1. Check Redemption Statements: Know the repayment charge of your current mortgage to understand if shifting is beneficial.
  2. Consult For Specialist Advice: For complex scenarios involving bad credit, multiple property types, or unique personal circumstances, seeking advice from a specialist can be invaluable.
  3. Understand the Market: House prices are a significant factor in your borrowing options. Use this information in your affordability calculation.

In conclusion, getting a mortgage with an existing property is a complex but manageable task. Understanding the types of mortgages available, scrutinising your financial standing, and seeking professional advice are essential steps in securing a mortgage that suits your needs. With the correct approach and a comprehensive understanding of potential costs, you’ll be better equipped to make an informed decision. Whether you’re climbing up the property ladder or just looking to make smarter financial commitments, knowing your mortgage options can make a significant difference in your financial future.

About The Author

mortgage broker damian youell

See some of Damian’s client reviews below

Damian is an experienced mortgage broker, founder of Ltd and company director. With over a decade working as a mortgage broker he has a strong understanding of hard to place mortgage cases. With hundreds of 5 star client reviews. hundreds of repeat clients his work speaks for himself.

He started as a one man band with the philosophy of putting clients needs ahead of his own. This ethos of offering excellent customer service has helped the business grow over the years. He gets satisfaction on getting cases pushed through to offer stage where other mortgage broker and companies have failed.

Throughout his time as an adviser he has carved out a niche area of advice helping clients with their business protection requirements too. Having helped hundreds of client with Relevant Life Policies, Shareholder Protection Insurance, Keyperson Policies and other important protection requirements of large to small businesses.

At home he is a family man and likes to spend his time with his four children and wife Lisa. He enjoys going on holidays spending time with friends and going for walks.