Second Home Options

Release cash tax free from Second Homes

Our Second Home Options provide your customer with a one-off, cash lump sum. There are range of options, allowing your client to choose whether they service the interest and capital, or let the interest roll-up.

Unlike traditional Lifetime Mortgages where the loan is secured on the main residence, our Second Home Options are secured on a Second Home property.

There are two options in our product range:

  • Second Home Lifestyle

This is a traditional Lifetime Mortgage, where the interest rolls up each month and no payments are due. 

  • Second Home Voluntary Select

Your client can make a contribution of up to 10% of the initial loan amount each year, without incurring an early repayment charge (ERC). An unlimited number of voluntary contributions can be made, with a minimum contribution amount of £50. Contributions can be made by cheque, BACs transfer, debit card or standing order.

How do we define a second home?

A second home is a property that:

  • must be available for the sole occupancy of the owner
  • if let-out, must be let-out for only a maximum of 4 weeks at a time
  • must be used by the homeowner for a minimum of 4 weeks every year

Our Second Home product features:

  • The interest rate is fixed from the outset.
  • Customers can release between £10,000 and £750,000
  • Fixed early repayment charges. Our Second Home Options have fixed early repayment charges. They are 5% of the initial loan amount for the first five years, 3% for years 5 to 8, and 0% from year 9 onwards.
  • No affordability assessments. Whether your customer chooses to make interest payments, capital and interest payments, or simply let the interest roll-up, we won't carry out any affordability assessments.

You can find out more about these product options in our At A Glance Second Home Options Guide.

    Interest rates

    Product Monthly interest rate (MER) Annual interest rate (AER)
    Second Home Lifestyle 5.99% 6.16%
    Second Home Voluntary Select 6.18% 6.36%


    Our maximum LTV is 39%. You can find our LTV tables here.

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