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Top tips for second-time buyers

author: Helen Fox

By Helen Fox

First-time buyers aren't left wanting when it comes to getting advice on buying a property. There's plenty of help to buy schemes designed for them as well. But if you've already been a first-time buyer and are considering your next move, what help can you get?


Find a better mortgage deal

You don't have to stick with your current mortgage provider when you move home. You could speak to your provider to see what deals they could offer you, or ask a mortgage broker for advice. Brokers will show you mortgages from numerous providers. The market's likely changed since you bought your first home, so prepare for different terms, interest rates and deposit requirements.

Check the terms of settling your current mortgage with your lender. If you're still in a fixed-rate period, there could be hefty exit fees and early repayment fees. Even if you want to stay with your current lender and transfer the mortgage to your new property, there’s likely to be costs involved, and not all mortgages are portable.

Check your credit history

Just like when you applied for your first mortgage, your credit history will need checking- and the healthier it is, the better the mortgage deals. Get a head start by checking your record with all three credit reference agencies:

  • Experian
  • TransUnion
  • Equifax - you can check your Equifax report for free with CredAbility.

Your credit score’s likely to have changed since you got your first mortgage. If you’ve been practising good credit behaviour, then it could’ve increased. However, other factors could have brought it down, such as changing jobs or taking out more credit. Now that you've decided to move home,  limit the number of applications you make for credit. This will reduce the number of hard searches on your file. Too many will harm your score.

If you’re thinking about getting a mortgage in principle, check which lenders do hard searches first.

Selling your current home

When you’re ready to start marketing your home, you’ll need to find out which estate agent will work for you. Don’t base this on cost alone. Have a look at how they advertise other properties and ask them what they’ll be doing to sell your house. Now you’ve got a property to sell, you won’t be at the bottom of the chain, so timing is crucial. If you think your property might take a while to sell, start marketing it as soon as possible. If it sells before you've found another property, you might have to consider where you and your possessions would go in the meantime.

Check moving is worth it

Moving home is expensive. Research the additional costs that you’ll incur on top of the purchase price. Consider the next property you buy and how long you’ll stay there. With all the costs involved in moving, it wouldn’t be wise to buy a property only to find that you outgrow it very quickly.

As a first-time buyer, you may have been given good deals for certain things and now find yourself paying more for services like solicitors. You'll also have to pay for a solicitor to handle the sale of your property, something you wouldn't have had to think about before. If you've accumulated more furniture and personal belongings, then removal costs will be higher.

Consider stamp duty

Now you’re moving on, remember to factor in the cost of stamp duty if you didn't before. If you're looking to purchase something higher in value than your current property, you might have to pay more stamp duty. At present in England, the property value threshold before you pay stamp duty is £250,000. 

Disclaimer: We make every effort to ensure that content is correct at the time of publication. Please note that information published on this website does not constitute financial advice, and we aren’t responsible for the content of any external sites.

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