UK 2nd Home Mortgage Calculator
Calculate your monthly payments, total costs, and stamp duty for a second home in the UK.
Input Details
Results
Loan Amount
Monthly Mortgage Payment
Total Repayment
Total Interest Paid
Stamp Duty Payable
Total Monthly Costs
(Including insurance, service charges, and council tax)
Stamp Duty Breakdown
As a second home, you pay a 3% surcharge on top of standard rates.
| Band | Rate | Amount | Tax |
|---|
Amortization Schedule
How your payments are split between principal and interest over time.
| Year | Principal Paid | Interest Paid | Remaining Balance |
|---|
2nd Home Mortgage Calculator: A Complete Guide
What Is the 2nd Home Mortgage Calculator?
The 2nd Home Mortgage Calculator Uk is a specialized financial tool designed to help UK homeowners estimate the costs associated with purchasing an additional property. Unlike a standard mortgage calculator, this tool accounts for higher interest rates, stamp duty surcharges (3% extra), and additional expenses that come with owning a second home.
Whether you're buying a holiday home, rental property, or investment property, this calculator provides accurate monthly payment estimates, total interest costs, and stamp duty liability—helping you budget effectively.
Features of the 2nd Home Mortgage Calculator:
✅ Accurate Stamp Duty Calculation
- Automatically applies the 3% second home surcharge
- Breaks down SDLT (Stamp Duty Land Tax) by bands
✅ Flexible Deposit Options
- Toggle between £ (fixed amount) or % (percentage of property price)
✅ Repayment vs. Interest-Only Comparison
- See how repayment mortgages (capital + interest) differ from interest-only options
✅ Detailed Cost Breakdown
- Monthly mortgage payment
- Total repayment amount over the loan term
- Total interest paid
- Additional costs (insurance, service charges, council tax)
✅ Interactive Charts & Amortization Schedule
- Pie chart showing principal vs. interest
- Year-by-year amortization (how much goes toward the loan vs. interest)
- Stamp duty visualization
✅ Mobile-Friendly & User-Friendly
- Works on desktop, tablet, and mobile
- Dark/light mode for better readability
How to Use the 2nd Home Mortgage Calculator – Step-by-Step Guide
Step 1: Enter Property Details
- Property Price (£): The purchase price of your second home.
- Deposit Amount: Enter either a fixed £ amount or percentage (%) (toggle available).
Step 2: Set Mortgage Terms
- Loan Term (Years): Typically 25-35 years (longer terms = lower monthly payments but more interest).
- Interest Rate (%): Current UK second home mortgage rates (usually 0.5-2% higher than primary residences).
Step 3: Choose Repayment Type
- Repayment Mortgage: Pays off capital + interest (lower long-term cost).
- Interest-Only: Pays only interest (lower monthly payments but higher total cost).
Step 4: Add Additional Costs (Optional)
- Property Insurance (avg. £300-£600/year)
- Service Charges/Ground Rent (if applicable)
- Council Tax (varies by location)
Step 5: View Results
- Loan Amount: Property price minus deposit.
- Monthly Payment: Estimated mortgage payment.
- Total Interest Paid: How much extra you’ll pay over the term.
- Stamp Duty Payable: Includes the 3% second home surcharge.
How the 2nd Home Mortgage Calculator Works?
1. Mortgage Repayment Calculation
- Repayment Mortgage: Uses an amortization formula to split payments between principal & interest.
Monthly Payment = [Loan Amount × (Interest Rate/12)] / [1 - (1 + Interest Rate/12)^(-Loan Term in Months)]- Interest-Only Mortgage: Only pays interest monthly; principal repaid at the end.
Monthly Payment = (Loan Amount × Annual Interest Rate) / 122. Stamp Duty Calculation (With 3% Surcharge)
Second homes in the UK pay extra 3% on top of standard rates:
| Property Value Band | Standard Rate | Second Home Rate |
|---|---|---|
| Up to £250,000 | 0% | 3% |
| £250,001 - £925,000 | 5% | 8% |
| £925,001 - £1.5M | 10% | 13% |
| Over £1.5M | 12% | 15% |
Example:
- Property Price: £400,000
- Stamp Duty:
- First £250,000: 3% = £7,500
- Next £150,000: 8% = £12,000
- Total SDLT: £19,500 (vs. £7,500 for a primary residence)
3. Interest Rates for Second Homes
- Typically 0.5% - 2% higher than primary residence mortgages.
- Fixed-rate vs. Variable-rate:
- Fixed: Stable payments (2-5 years).
- Variable: Can fluctuate with the Bank of England base rate.
Understanding the Results or Output of the 2nd Home Mortgage Calculator:
1. Loan Amount
- Property Price - Deposit = How much you’re borrowing.
2. Monthly Mortgage Payment
- Repayment: Higher monthly cost but builds equity.
- Interest-Only: Lower payments but no equity growth.
3. Total Repayment
- Repayment: Principal + all interest over the term.
- Interest-Only: (Monthly interest × term) + final principal payment.
4. Total Interest Paid
- Shows how much extra you’ll pay over the loan term.
5. Stamp Duty Payable
- Includes the 3% second home surcharge.
6. Amortization Schedule
- Shows yearly principal vs. interest payments (for repayment mortgages).
Final Thoughts
The 2nd Home Mortgage Calculator UK is designed to give you accurate, instant estimates for buying an additional property. By factoring in higher interest rates, stamp duty surcharges, and extra costs, it helps you make informed financial decisions.