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Yes, in principle. Remortgaging to buy another property is a normal, well trodden route, and it is how a lot of landlords fund their next purchase. You remortgage a property you already own for more than the current balance, and the difference is released as cash to use as a deposit. The lender will want to know what the money is for, the equity has to be there, and the sums have to work on both properties at once.
The version I arrange most often is a landlord remortgaging one rental to fund the deposit on the next. But the same mechanics work on your own home too, and both routes are covered below.
How does remortgaging to buy another property work?
Say you own a rental worth £250,000 with £120,000 left on the mortgage. A buy to let remortgage at 75% loan to value could raise up to £187,500, which repays the £120,000 and releases up to £67,500 before fees. That released money becomes the deposit on the next purchase. The same arithmetic applies to a residential remortgage, just with different limits and a different affordability test.
How much equity do you need?
On a buy to let, most lenders cap the remortgage at 75% of the property value, and the rent has to support the new, larger loan under the lender’s stress test, so the rent can cap the figure below what the value alone suggests. I have covered that mechanic in how much rent you need for a buy to let mortgage, and my maximum borrowing calculator gives you the quick version. On your own home, higher loan to values exist but the released amount is governed by your income and outgoings rather than rent.
Remortgaging to raise a deposit for another purchase is a normal, accepted route, provided the equity and the sums support it.
Most buy to let lenders cap the remortgage at 75% of the value, and the rent has to support the new loan under the stress test.
The commonest version I arrange is a landlord remortgaging one rental to fund the deposit on the next.
The new, larger payment counts against you on the purchase application. Both mortgages have to work at once.
Budget for the 5% stamp duty surcharge on the purchase itself, alongside the deposit rather than as an afterthought.
Remortgaging a buy to let to buy the next one
This is the standard way portfolios grow: the first property’s equity buys the second, and so on. The remortgage is assessed on the rent of the property you are remortgaging, not the one you are buying, and the purchase is then assessed on its own rent. If you already own four or more mortgaged rentals you become a portfolio landlord and lenders look at the whole picture. I have written up the release mechanics in detail in releasing equity from a buy to let.
Remortgaging your own home to fund a rental deposit
Many residential lenders will allow capital raising for an onward property purchase, declared as such on the application. The extra borrowing has to fit your income under normal affordability rules, and it is worth being clear eyed about what you are doing: you are securing more debt against the house you live in to invest elsewhere. Your home may be repossessed if you do not keep up repayments on your mortgage.
Does the extra borrowing count against the new application?
Yes. The new, larger payment sits in the background of the purchase application, so both mortgages have to work at the same time. On a buy to let purchase the lending is mostly rent based, but lenders still look at your overall position, and on a residential purchase the background buy to let is usually fine where the rent covers its own mortgage.
One thing I am seeing a lot of at the moment: down valuations. When the remortgage valuation comes in below what you expected, the released figure shrinks with it, and the gap has to come from savings or the plan has to change. Build some slack into the numbers rather than working to the last pound.
What about stamp duty on the new purchase?
If you already own a home, the new purchase carries the additional property rates, which include the 5% surcharge. A £200,000 rental purchase in England comes to £11,500 at those rates as they stand in August 2026. Run your own figure through my stamp duty calculator and budget for it alongside the deposit, not as an afterthought.
Speak to an expert
Want to know what your property could realistically release towards the next one? Call me on 01425 203055 or email info@htgmortgages.com and I will run both ends of the sum.
Timing the remortgage against the purchase
If you are inside a fixed rate, remortgaging early usually means an early repayment charge, and whether that is worth paying depends on the numbers, covered in product transfer versus remortgage. The released money lands when the remortgage completes, so the clean sequence is remortgage first, then offer on the purchase with the deposit already in hand. A decision in principle on the purchase side helps you move quickly once the money is there.
The alternatives worth knowing about
A further advance borrows more from your current lender without a full remortgage, which can make sense mid fix, and I have covered it in borrowing more on your mortgage. A second charge mortgage is a separate loan behind your existing one. And if the plan is to keep your current home and rent it out while buying the next one, that is let to buy, which is its own structure with its own rules.
What will the lender ask about the released money?
The application states the purpose, and a deposit for an onward property purchase is one of the most common and least controversial answers there is. Some lenders want to see the onward purchase evidenced, most simply record it. A small number of residential lenders restrict capital raising for business purposes, which is one of the things I check before recommending where to apply.
So what should you actually do?
Start with three numbers: what the property you would remortgage is worth, what you owe on it, and, if it is a rental, the monthly rent. From those I can tell you what is realistically releasable and what that means for the budget on the next purchase, both ends of the sum in one conversation. Book a call, phone me on 01425 203055 or WhatsApp on 07731 675537. The wider process is covered in my buy to let remortgage guide.
Running the sums on holding both? Can you have two mortgages answers the affordability and stamp duty questions that come with it.
Need Personal Mortgage Advice?
Every buyer’s situation is different. While this guide explains the general rules, the right mortgage for you depends on your income, deposit, credit history and future plans. If you’d like tailored advice, I’m here to help, with whole-of-market coverage.
