Funding a holiday home purchase with a mortgage is the most popular and traditional route to raising funds. Depending on personal circumstances and finances, a mortgage can be raised against current income and equity held in the main residence or other properties.

In many respects, the application for a second home mortgage is the same as the application for a mortgage for the primary residence. The applicant will need to show a plan to repay the mortgage and produce a deposit in line with the bank’s lending criteria. The size of the deposit varies from lender to lender and deal to deal dependant on the perceived risk.

Many high street deals, typically shown in best buy tables in the media, are not made available for second home purchases where the property is to be let so it is best to check which products are a available.

The credit crunch of 2008 has changed the lending market dramatically and restricted the amount of credit available across all types of purchases. In order to secure credit, it may be worth:

• Using a specialist mortgage broker who specialises in second home mortgages.
• If buying a new-build, the developer of selling agent may have finance in place, as well as incentives to fund a purchase.
• Consulting the estate agent who is selling the property if they are based in a popular second home area, as they may be able to provide advice and guidance on who is currently offering second home mortgages.
• If buying on a holiday park, they may have finance plans in place to help with the purchase.