Buying your second home can be just as daunting as the process of buying your first, only this time you have the added pressure of selling your first home in the process! You might feel that once you have your foot on the property ladder, there doesn’t seem to be as much help and guidance for when you want to take your next steps, at least it’s not advertised that way.
In this article we share 6 of our top tips for second time buyers in Northern Ireland to help guide you through an equally difficult process and help you plan ahead for the next big step in the property market. Of course, it is always advised that you seek legal advice for your own individual cases, but should you have any questions you can contact our team who would be more than happy to advise as best they can!
1. Get your home on the market
If you are hoping to move, you’ll most likely have to sell your first home - unless you have a lump sum coming your way to help you with a deposit.
Some of our clients have come to us with the belief that they need to find a new home before they think about selling their own and vice versa, the truth is it’s best to do both simultaneously - multi-tasking at its finest! This can be an overwhelming prospect, but rest assured our expert team at Homes Independent will effortlessly guide you through this process and be with you every step of the way!
2. Changing mortgages to buy your new home.
If you’re planning on moving home soon, your first step should be to check the terms of your existing mortgage.
While your circumstances may not have changed, your mortgage provider’s lending criteria could have! So it’s always important to check this.
You may have got your first mortgage approved without much hassle, but that doesn't mean the same will happen again. And if you haven't made mortgage payments on time, chances are the lender will refuse in the hope you will choose another provider.
3. The costs of moving homes
It’s easy to forget about the costs involved in buying a home when you’ve been living in your current home for a while, and we encourage all clients to carefully consider these in advance and be realistic, even about the small costs, as they can all mount up. One example is conveyancing costs; not only will you need to pay this for your new property, you'll also have to pay this cost on the home you’re selling too.
Another cost that gets overlooked is the cost of removals! Try not to settle on the first one as they all differ! We recommend shopping around to get a few different quotes from removal companies and even ask around to see who friends and family have used – they might just save you in the long run!
We aren’t trying to put you off, but we are asking you to be honest and ask yourself, can you currently afford to move, or do you need some more time to save?
4. Build up savings to cover yourself
Depending on circumstances of the sales process, some second time buyers face having to rent and store possessions for a while if they’ve sold their current home before completing a purchase.
It’s therefore smart to build up savings in advance for peace of mind protection especially if you find yourself in a situation where you’re unable to sell your home at the same time as buying your new one. No extra savings? It’s not all doom and gloom, it’s possible to get a temporary ‘bridging loan’ to see you through the transition phase.
At Homes Independent we can alleviate the stress of a second time purchase and provide solid advice based around your circumstances.
5. Find the right mortgage deal for you
It may seem like the obvious choice to stay with your current mortgage provider, however, this is the time to shop around and find a mortgage deal that may suit your circumstances better.
Second time buyers can find it difficult dealing with the larger monthly repayments that come with a home worth more than their first. The type of re-mortgage you go for can make a vast difference to the amount that you repay every month. So, we strongly advise you to shop around.
For impartial advice contact our mortgage advisor Rob Adams. We can help advise you on what you’ll be able to afford before you start looking at properties.
6. Check your credit report
When applying for a mortgage it’s important to check your credit history to make yourself as attractive as possible to lenders in the hope they’ll offer you a down payment. Before making any applications, ensure that all details credit score companies hold on you are correct and up-to-date to save any extra hassle. For more information on how improve your credit score see our last blog here for 11 ways to boost your credit score.
Whether you’re thinking about moving or simply just want to speak to someone about the steps to take – Homes Independent are on hand to help. Contact our mortgage adviser Rob Adams today to discuss your options on becoming a second time buyer!
Alternatively, you can arrange for our no obligation, free valuation to get insight into your local market and discover just how much your property would sell for.
We look forward to working with you in the future!