First-time buyers are given plenty of help and advice when they buy their first home, but the same does not apply to those who are looking to buy their second property. As a second-time home buyer in Wimbledon you’re handling a house sale for the first time, and will find the buying process differs from your last experience.
Maybe it’s time to move to a larger family home in Wimbledon Village or New Malden, or you’re relocating to Coombe or Ham from the heart of London?
To set you on the right path, we share our 9 top tips for second-time buyers in Wimbledon.
The obvious difference between being a first-time buyer and a second-time buyer is that you have a home to sell as the second-time buyer. The amount of money you have available to spend on your new home will largely depend on how much you can get for your existing property.
To get the best possible price for your home, we would suggest:
Moving is expensive and stressful, so be clear about your reasons for moving. Has your family outgrown your present home? Are you moving home because of a career change? If you want to avoid moving for the third time, consider how your life may change in future, and look for a home that will satisfy those needs.
When you bought your first home, you may have made compromises to get a foot on the property ladder before house prices increased further. As a second-time buyer with a property to sell, you are more protected from rising prices so you can afford to be pickier. Make a list of your requirements, separating the must-haves from the nice-to-haves. Be sure that your new home ticks all the must-have boxes.
Ensure that the benefits of moving house outweigh the costs, as buying a second home can be more expensive than moving into your first property. Before you put your house on the market, budget by listing all the costs you are liable for. Don’t get caught out by a surprise bill you have overlooked. You should consider:
As a second-time home buyer, you will pay stamp duty and it can be a considerable amount if you are buying a home for a large family in Wimbledon. On a £2 million property, your stamp duty bill will be £151,250 if you’re a UK resident and it’s your main residence.
You can use the HMRC’s Stamp Duty Calculator to work out how much stamp duty you’ll have to pay on your property purchase. If it’s a commercial property, inherited property, or a residential property that’s not your main home (e.g. a buy-to-let), you may also need to pay capital gains tax.
Before house-hunting, speak to your existing mortgage lender about mortgage options, and approach mortgage brokers too. A loan from another provider may offer a better deal, but factor in arrangement fees as well as interest rates. Leaving your existing deal can also attract an early repayment charge and exit fee.
Alternatively, you can take your mortgage deal with you, known as porting your mortgage. You must meet your existing lender’s current mortgage affordability criteria, even as a second-time home buyer – and the requirements may have changed over the years. If the new house’s selling price is higher, you may need to apply for a second mortgage loan for the additional portion.
As a second-time home buyer, your deposit can include any equity in your first home, typically increasing your buying power. Your financial situation will usually be stronger as a second-time buyer than when you bought your first home.
If your earning power has increased over the years and you have a good credit rating, you should be even more attractive to mortgage providers, so shop around for the best deal. A sizeable down payment and good credit score can be vital if you’re older or retired, as borrowing limits can be restrictive.
At Robert Holmes, we know the stress you could experience when trying to sell one house and buy another one. The longer chain, the higher the possibility of issues cropping up which cause delays, but being mentally prepared will help you remain patient.
When one property purchase relies on another, you’re in a chain. If your buyers are chain-free (e.g. first-time buyers) and your new home’s sellers are too (e.g. moving to a new build or vacant home), the chain may be relatively short. Yet many chains are longer or more complex.
Strengthen your position by finding a buyer and getting a mortgage agreement in principle before making an offer on your new home. Then, instruct a solicitor, arrange a survey promptly, and make sure your documents are in order.
There are more schemes for the first-time home buyer vs second-time home buyers, but help for second-time home buyers is technically available. Open until 30th June 2025, the Mortgage Guarantee Scheme offers 95% home loans, so second-time buyers can purchase with as little as a 5% deposit.
Choosing an estate agent carefully will have a big impact on how quickly you can sell your house, and the price it achieves. Read our blog for tips on choosing the best estate agent.
Here at Robert Holmes, we will give you an accurate valuation of your present home and use our expertise to help you market and sell your property.
Did our tips tell you what you need to know about buying and selling as a second-time home buyer? Call us today to discuss finding your new home in Wimbledon, South Wimbledon, Putney, Wandsworth, Battersea, Clapham, and beyond. We can offer a wide range of houses suitable for your present and future needs.
Let us know what you are looking for in your new home and we will tailor our search to your requirements.
Book a quick phone consultation with one of our negotiators.
"*" indicates required fields
