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Moving Home Again: Everything You Need to Know.

Moving home, whether it’s your first, second or third time, is always an exciting yet intimidating experience. There’s so much to think about- and things may have changed drastically since you were venturing onto the property ladder for the first time. Whereas first time buyers are given a lot of handholding throughout the whole process- from available financial help to house viewing and moving tips, second time buyers are often expected to know the ins and outs of an industry which is ever changing without being directly involved in the property market. If you’re wondering “how can I sell my house fast?” then ensuring all the steps are in order is a great way to try and help the process occur more smoothly and quickly.  If you’re in need of some handholding, or just general advice about being a moving house, here at We Buy An have compiled our top pieces of advice and hacks to help.

Prior to Moving:

Moving house is a daunting experience no matter how many times you do it. This is probably made harder by the notion of having a house that is already set up, with a mortgage either being paid or fully paid for, and perhaps a family to consider. Prior to moving there are a few things to think about, such as:

Prioritising Your Needs:

Scrabbling to get onto the property ladder is a difficult process- especially as house prices have changed over the years. Taking this into account, it’s beneficial to make a list of requirements you will want to gain from your move, separating the ‘must-haves’ from the ‘nice-to-haves’. Deciding the needs from the musts allows you to be pickier in terms of property and pricing and have more options that are worthwhile.

Think of Your Future:

Think about the purpose of your move and how the change in your circumstances may affect this. Things such as growing family or a career change may play a factor in this, and it’s worthwhile to think about how things may change in the distant future and how this may impact the future of your home and life.

Mortgages:

Although as a homeowner you’ve been through the financial hoops of owning a property, in addition to keeping on top of payments and legal requirements, things may have changed as you become a second time buyer. If you’re looking to move house as a second time buyer, there’s various financial responsibilities and mortgage requirements that may impact you. We’ve broken down this area- here are some things to think about:

Second Time Buyer Mortgage:

Some mortgage lenders may class people who haven’t had a mortgage for three years or more as first-time buyers, however if you have previously owned a home but do not anymore, or you have an ongoing mortgage, you may be classed as a second-time buyer if you’re looking for a property on the market. The second time buyer mortgage is subjective to the homeowner’s circumstance, so it’s best to discuss this with a mortgage expert.

Deposit Requirement for Second Time Buyers:

The differences between deposits for first- and second-time buyers are minimal, as there’s not much difference between the two. A large amount of mortgage lenders will ask you for at least 10% of the property’s value, however putting down a larger deposit is beneficial in aiding you to land a superior interest rate and offset any of the risks involved in the agreement. Additionally, there are 5% deposit mortgages that are available to second-time buyers, however, this comes with less product choice in comparison to first time buyers- as the Help to Buy scheme is only exclusive to first time buyers. Some lenders offer 95% LTV mortgages for second-time buyers, and most second-time buyers find that previously having a mortgage helps them to secure the deal that they want, as they have a consistent record of mortgage payments.

Extra Tips:

Some further pieces of advice for second-time buyers who are looking into moving house again:

  • Take advantage of government schemes. The scheme is now open to second time buyers, so it enables you to get a mortgage with 5% deposit from a lender. However, interest rates are high when using this scheme, so ensure to speak to a lender to see how deals compare.
  • Port your current mortgage. If you are satisfied with the current terms of your mortgage, you may be able to transfer it over to your next home. By porting your current mortgage, it means you can retain your interest rate instead of having to take on a higher rate. However, in doing this you must expect your lender to review your circumstances and decide whether this is possible.
  • Switch to a buy to let mortgage. It’s a good idea to let your current property out and get a let-to-buy mortgage. If this is something that interests you, then speak to a mortgage lender for more advice.

Stamp Duty:

It’s important to familarise yourself with Stamp Duty Land Tax, especially If you’re a second time buyer as the payment rules are different. Whereas usually you would pay Stamp Duty Land Tax on anything above £125,000 that is considered an increasing portion, second time buyers should want to ensure that you know how much this will be from the get-go.

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