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Mortgages for Second-Time Buyers

Ready to make the move as a second-time buyer? Here’s a quick guide to second-time mortgages to help make your move smooth...

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Pete Mugleston

Author: Pete Mugleston - Mortgage Advisor, MD

Updated: October 28, 2021

Whether you’re ready to upsize from your first home to a larger property or are looking to relocate somewhere new, read on to learn what to expect when looking for a mortgage as a second time buyer.

What is a second time buyer mortgage?

If you have previously owned a home but do not any longer, or have a mortgage at the moment, you may be classed as a second-time buyer if you’re in the market for property.

Moreover, some lenders may view people who haven’t had a mortgage for three years or more as first-time buyers.

To find out how a lender might view your own circumstances, talk to an expert. The advisors we work with are experienced in second-time buyer mortgages and can determine what your options might be. Call us on 0808 189 2301 or make an enquiry online.

Deposit requirements for second-time buyers

Deposit requirements for second-time buyers aren’t really any different to first-time buyers. Most lenders will ask you for at least 10% of the property’s value, but putting down more can help you land a superior interest rate and offset any risks the agreement involves.

There are 5% deposit mortgages available to second-time buyers, but you will likely have less product choice than most first-time buyers if you only have this amount, since the Help to Buy scheme is now exclusive to first-time buyers, as are many of the latest 95% loan-to-value (LTV) mortgage products.

That said, some mortgage lenders now offer 95% LTV mortgages for second-time buyers. You may even find that your history of having previously had a mortgage makes it easier for you to secure the deal you want. It can, in fact, be easier due to having a track record of making mortgage payments.

Mortgage options for second time home buyers

As a second time buyer you have several different options to help you secure the right mortgage.

Take advantage of a government schemes

The government’s new mortgage guarantee scheme is open to second-time buyers and it allows you to get a mortgage with just 5% deposit from a participating lender. Interest rates are relatively high for deals through this scheme, though, so be sure to speak to a broker to see how the deals on offer compare to the alternatives.

Port your current mortgage

If you are happy with the terms of your current mortgage, you may be able to port it to purchase your next home.

Porting the current mortgage on your old home allows you to apply your current mortgage to your new home. Doing this may mean you can retain your interest rate instead of having to risk taking on a higher rate.

Although this idea may appear to be a good shortcut to getting things moving faster, you should expect your lender to review your current circumstances to decide whether the option is possible. With many lenders, porting your mortgage is almost the same as making a brand new mortgage application.

Often, it’s only possible to port fixed-rate mortgages but it’s worth checking with your mortgage lender.

If your lender agrees to port your mortgage, you should expect fees to be applied.

Remortgage your current property to release equity

Provided you have enough equity in your current property and you intend to keep your original property, you could consider remortgaging to release equity as a deposit towards your second-time buyer mortgage.

Whether you’re maintaining mortgages for two properties or are increasing the sum you borrow against your mortgage, most lenders will need to be sure you can afford the higher payments from your income alone.

Switch to a let to buy mortgage

If you want to buy a new property and keep your current property to rent out, a let to buy mortgage might be a good route for you. If this sounds like a good option, see our let to buy mortgages guide for more information.

What sort of mortgage deals are there for second-time home buyers?

As we touched on above, the mortgage schemes available to you as a 2nd time home buyer may seem limited when compared to what you might have been offered as a first-time buyer, but it’s still worth shopping around for potential deals.

It’s important to remember that the bigger your deposit the better the deal you’re likely to receive, but even without a large deposit, you could still find a good deal to suit you.

Mortgage lenders change their offerings regularly so it’s worth talking to an expert advisor who will be able to tell you about the kind of offer currently available which you may be able to benefit from.

If you wish to discuss possible options, talk to an expert. The mortgage brokers we work with are experienced across the whole market and ready to give advice to second time buyers.

Should I use a second time buyer mortgage calculator to work out what I can borrow?

As a 2nd time home buyer you can use a mortgage calculator to work out:

  • how much a mortgage might cost each month
  • how much you can borrow based on the deposit amount
  • how much you can afford and what rates you could qualify for
  • if you might qualify for a specific rate offering right now

To establish how much your mortgage might cost as a 2nd time home buyer, take a look at our mortgage repayment estimator.

Mortgage calculators can only give a rough idea of the amount you can borrow since every lender will assess customers differently but they can be a good way to get a quick look at what you might be able to borrow.

Get advice from an expert in 2nd time buyer mortgages

If you have any questions about what your mortgage options might be as you prepare to make the move and want to speak to an expert for the right advice, get in touch and we’ll match you with an expert who specialises in second-time buyers.

Finding the right expert could help you save time and money in the long run, and this is where we come in. Our free broker-matching service will assess your needs and circumstances before pairing you up with an advisor with the expertise you need.

Call us on 0808 189 2301 or make an enquiry online and we’ll set up a free, no-obligation chat between you and a second-time buyer mortgage specialist today.

Ask a question

We can help!

We know everyone's circumstances are different, that's why we work with mortgage brokers who are experts in Second-Time Buyers Mortgages

Ask us a question and we'll get the best expert to help.

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About the author

Pete, an expert in all things mortgages, cut his teeth right in the middle of the credit crunch. With plenty of people needing help and few mortgage providers lending, Pete found great success in going the extra mile to find mortgages for people whom many others considered lost causes. The experience he gained, coupled with his love of helping people reach their goals, led him to establish Online Mortgage Advisor, with one clear vision – to help as many customers as possible get the right advice, regardless of need or background.

Pete’s presence in the industry as the ‘go-to’ for specialist finance continues to grow, and he is regularly cited in and writes for both local and national press, as well as trade publications, with a regular column in Mortgage Introducer and being the exclusive mortgage expert for LOVEMoney. Pete also writes for OMA of course!

Read more about Pete

Pete Mugleston

Mortgage Advisor, MD

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FCA disclaimer

*Based on our research, the content contained in this article is accurate as of the most recent time of writing. Lender criteria and policies change regularly so speak to one of the advisors we work with to confirm the most accurate up to date information. The information on the site is not tailored advice to each individual reader, and as such does not constitute financial advice. All advisors working with us are fully qualified to provide mortgage advice and work only for firms who are authorised and regulated by the Financial Conduct Authority. They will offer any advice specific to you and your needs.

Some types of buy to let mortgages are not regulated by the FCA. Think carefully before securing other debts against your home. As a mortgage is secured against your home, it may be repossessed if you do not keep up with repayments on your mortgage. Equity released from your home will also be secured against it.

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