In today’s property market, many homeowners in Ireland are exploring ways to leverage their current property to step into their next. One increasingly popular option is remortgaging your home to buy another property.
Whether you’re considering a second home, a holiday getaway, or a buy to let investment, it’s possible to release the equity in your existing home (or even an investment property), to help fund your next purchase. Not every mortgage lender in Ireland will facilitate this, but several do, and with the right advice, it could be the key to expanding your property portfolio.
Let’s break down how to remortgage to buy another property in Ireland, what it involves, and how to decide if it’s right for you.
Who Can Remortgage to Buy Another Property?
While not all banks in Ireland offer this option, some lenders do allow homeowners to remortgage for the purpose of purchasing a second property, in certain circumstances.
To qualify, you must own a property with equity available and be in a strong enough financial position to manage additional borrowing. This could apply whether you’re:
- Living in your primary residence
- Already an investor with one or more buy-to-let properties
- Looking to buy a second home for family or personal use
Key Factors That Determine Eligibility
Your ability to remortgage your home to buy another property depends on:
- Your available equity – How much of your mortgage is already paid off?
- Loan-to-Value (LTV) ratio – Most lenders will allow up to 80% LTV, sometimes more.
- Your income and financial stability – You’ll need to pass affordability checks.
- Credit history – A strong credit history is essential.
- Purpose of the second property – Lenders may have different terms for holiday homes, buy-to-let, or helping family.
Common Scenarios for Remortgaging to Buy Another Property
Remortgaging isn’t just about finding a better rate—it can also be a smart way to unlock property potential. Below, we explore some of the most common scenarios where remortgaging can help you purchase another property, along with key considerations for each.
Trading Up While Keeping the Existing Home as a Buy to Let
This is a common route for homeowners who want to move into a larger property while retaining their current home as an investment. With this strategy, you remortgage your house to buy another, then rent out your existing property.
Things to consider:
- You’ll likely need a buy to let mortgage on the old property (or you may be able to retain your existing home loan).
- You must declare rental income for tax purposes.
- Mortgage affordability checks will include both properties.
Using Equity Release to Buy a Second Home
This scenario involves releasing equity from your existing home to buy a second home—for family use, a holiday home, or even a second home abroad.
You’ll typically need to leave at least 20% equity untouched after the remortgage, meaning you should have a fair chunk paid off on your original mortgage.
Helping Family Members Get on the Property Ladder
Some people use equity release for a second home to provide a deposit for a child or relative buying their first home. This can be structured as a gift or private loan, but lenders will ask for documentation either way.
Can I Remortgage My Property to Buy Another?
Yes, you can. But whether or not you’ll be approved depends on your financial situation, the equity in your existing property, and the new mortgage lender’s criteria.
So, if you’re wondering:
- “Can I remortgage to buy another property?”
- “Can you remortgage to buy another property in Ireland?”
The answer is yes—it’s possible, and more common than you might think. Just ensure you get the right advice to avoid pitfalls.
How to Remortgage to Buy Another Property in Ireland: Step-by-Step Guide
Thinking about remortgaging your home to buy another property in Ireland? It’s essential to understand the steps involved. From evaluating your current equity to navigating lender requirements and choosing the right mortgage option, this step-by-step guide will walk you through the key stages of the process—so you can move forward with confidence and clarity.
1. Assess Your Home’s Equity
Check your property value, then subtract your outstanding mortgage. The remaining equity is what you may be able to access.
2. Understand Lender Requirements
Lenders will consider:
- Affordability (can you handle two mortgages?)
- Intended use of the new property
- Your overall financial profile
3. Choose the Right Remortgage Option
Your broker can help you compare:
- Standard remortgages
- Top-up mortgages
- Lifetime or interest-only options for older borrowers
4. Prepare for the Application Process
You’ll need:
- Income documents (payslips, tax returns)
- Bank statements
- Mortgage account info
- Proof of savings or rental income
5. Finalising the Remortgage and Purchasing the Second Property
Once your remortgage is approved, you’ll receive a lump sum (or additional loan amount) to fund your new property purchase.
Pros and Cons of Remortgaging to Buy a Second Property
Remortgaging your home to purchase a second property can be a smart financial move—but it’s not without risks. Let’s break down the key pros and cons to help you decide whether remortgaging is the right choice for you.
Pros:
- ✅ Access to home equity for investment or lifestyle
- ✅ Potential to generate rental income
- ✅ Property values may appreciate over time
Cons:
- ❌ Higher monthly repayments
- ❌ Greater financial exposure if property values fall
- ❌ Fewer lender options and stricter criteria
How MortgageLine Can Help You Remortgage to Buy a Second Property
At MortgageLine, we’ve helped countless clients across Ireland remortgage to buy a second property and unlock the value of their home. Whether you’re upgrading, investing, or helping family, our team:
- Compares lenders who offer equity release to buy a second home in Ireland
- Guides you through the full remortgage and property-buying process
- Ensures you meet all lender criteria and avoid costly delays
- Provides personalised advice and support from start to finish
Is it worth using a mortgage broker? Discover the benefits.
Contact MortgageLine for the Best Advice on Buying a Second Property
Thinking about remortgaging your house to buy another property? Let the experts at MortgageLine help you make the right move.
✅ Expert advice
✅ Access to multiple Irish lenders
✅ Transparent, no-jargon support
Contact us today for a free mortgage review call.
FAQs
How can I buy a second home without selling my first?
By remortgaging your existing property, you can access equity to use as a deposit—or even the full amount—for a second property.
Can you have two residential mortgages in Ireland?
Yes, you can—provided you meet affordability criteria for both mortgages.
Can I remortgage to buy a second property if I still have a mortgage?
Absolutely. As long as you have sufficient equity and income, remortgaging is an option even if your first mortgage isn’t paid off.
Can I remortgage to buy a second property for rental income?
Yes. This is a common strategy. Just make sure the property meets criteria for a buy to let mortgage, and you understand the tax implications.
