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Second time buyer mortgage

Written By:
Myles Robinson - Expert Finance Advisor

Posted: Aug 13, 2023

Second-time buyer mortgages – How to get one for UK properties

You may be looking to move from your first home to a more significant property, or you might want to downsize. Here are some tips to help you find the right mortgage for you.

Whether you have a current mortgage deal, you are a first-time buyer aiming to get on the property ladder or looking to move from an existing lender; we will introduce you to a mortgage provider to get mortgage approval.

Contact our mortgage brokers today; we provide mortgage advice with no obligation and free of charge.

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What is a second-time buyer mortgage?

If you are looking to buy property, and you own a house but no longer have one, or if you have a mortgage, you could be considering a second mortgage.

Some mortgage providers might consider people who don’t have a mortgage for at least three years as first-time buyers.

Talk to an exclusive mortgage expert to determine how a lender may view your situation. Our advisors are experts in second-time buyer mortgages. They can help you assess your options.

Contact us today or submit an enquiry online. We will thoroughly explain all the potential costs.

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Second-time buyers must make a deposit.

Second-time buyers don’t have to pay the exact deposit requirements as first-time buyers. While most lenders require a second home mortgage deposit of at least 10% of the property’s value, you can invest more to get a better interest rate and mitigate any risk.

Second-time buyers can get a 5% deposit mortgage, but this will limit your product choices. The Help to Buy program is only available to first-time purchasers, and many new 95% loan to value (LTV) mortgage products are exclusive to first-timers.

Some mortgage lenders offer 95% LTV mortgages to second-time buyers. You may have a history of getting a mortgage before, making it easier to get the mortgage deals you want. You may find it easier if you have an account for making monthly mortgage repayments.

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Second-time home buyer mortgage options

Many options are available to you as a second-time buyer to secure the right mortgage.

Get the most out of government programs.

Second-time buyers can now apply for the government’s mortgage guarantee program. This allows them to obtain a mortgage with a 5% deposit from participating lenders. This scheme offers relatively high-interest rates, but it is worth speaking to a broker to compare the options.

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Transfer your existing mortgage

You may be able to port your existing mortgage to buy your next home if satisfied with its terms.

You can transfer the existing mortgage on your home to your new property by porting it.

This may allow you to keep your interest rate rather than taking on a higher rate.

This idea might seem like a great way to speed things up, but your lender will need to assess your circumstances and decide if it is feasible. Porting your mortgage to a different lender is nearly the same thing as making a new mortgage request.

It’s not always possible to transfer fixed-rate mortgages, but it’s worth talking with your mortgage lender.

You should expect fees if your lender agrees to port your mortgage.

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To release equity, remortgage your existing property

If you have enough equity in your property and intend to keep it, remortgaging could be an option to release equity towards your second-time buyer mortgage.

Lenders will require proof that you can afford higher monthly payments, regardless of whether you are obtaining mortgages on two properties or increasing the amount you borrow to pay off your mortgage.

Change to a mortgage let to purchase

A let-to-buy mortgage is an excellent option if you want to purchase a property but keep your existing property available for rent. This may sound like an option. For more information, please see our guide on lending to mortgages.

What kind of mortgage deals are available for second-time homebuyers?

We mentioned that the mortgage programs for second-time home buyers might seem less than what was offered to first-time buyers, but it is worth looking around for possible deals.

Remember that the larger your deposit, the better the deal. However, even if you don’t have a large warranty you might still be able to find a deal that suits you.

Speaking to an advisor about mortgage lenders changing their offers regularly is essential. This will allow you to find out what kind of offer you might be eligible for.

Our mortgage brokers are experts in the entire market and can advise second-time buyers.

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Should I use a mortgage calculator for second-time buyers to determine how much I can borrow?

To calculate the cost of a second home, you can use a mortgage calculator

  • How much a monthly mortgage payment might cost
  • Based on your deposit amount, how much can you borrow
  • How much can you afford, and what rates are available to you
  • Check to see if you are eligible for a rate offer right now

Our mortgage repayment estimator will help you determine how much your mortgage could cost as a second-time home buyer.

Although mortgage calculators cannot give you an exact idea of how much you could borrow, each lender will evaluate you differently. However, they can provide a good way to see what you might be eligible to borrow quickly.

Ask an expert about 2nd-time buyer mortgages.

We’ll match you up with an expert specialising in second-time buyers if you have questions about your mortgage options as you move.

We can help you find the right expert to save you time and money.

We’ll arrange a no-obligation, free chat between you (and a second-time buyer mortgage specialist) by contacting you today.

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