No matter the situation, securing your mortgage approval swiftly is essential.
You might assume that obtaining a second mortgage would be simpler, but unfortunately, it often proves twice as complicated. Introductory rates and first-time buyer schemes no longer apply, making the process considerably tougher. Yet, with our specialised guidance, we can ensure you secure the right mortgage for your needs.
Switching Mortgages for Your Next Property Purchase:
Since your initial mortgage application, two significant changes might have occurred: either in your circumstances or with your mortgage provider.
Changes in Your Situation: In recent years, many have transitioned to remote work, potentially shifting from conventional employment with payslips to a contractual basis when buying their first house. If your situation has evolved, especially towards contract-based work, seeking specialised assistance is vital. We comprehend the intricacies of your work status and can present it to mortgage providers in a way that maximises your chances of securing the right mortgage.
Changes in Your Mortgage Provider: While your circumstances might remain largely the same, your mortgage provider may have revised its lending criteria. Couple this with escalating house prices, which rose by 4.5 percent between January 2018 and January 2019, potentially limiting the amount you can borrow.
Hence, collaborating with a mortgage provider who can explain the implications of industry or lender changes on your application is crucial. They can offer tailored solutions suited to your situation.
Mortgage Knight Restores Your Advantage with Next Time Contractor Mortgages:
Amidst the array of mortgage advisers and firms, why opt for us for your subsequent property purchase or move? Standard mortgage providers often handle cases like yours as they do for employed individuals with payslips. This approach significantly hampers your chances of securing a mortgage. Instead, we understand how to present your accounts based on gross contract value, recognising that traditional accounts might not accurately depict your earnings. We provide an honest assessment of your situation’s likelihood of approval. Plus, our robust client base grants us access to some of the finest financial products tailored for contractors.
Feel free to reach out for more information on our service or the mortgage process. Whether you’re upgrading or downsizing, whether you were a contractor during your first house purchase or not, we’re here to offer the expert guidance you require.
Call us today for a comprehensive quote customised to your contractor position and circumstances. Reach out or call us now to speak with one of our expert mortgage brokers on 02081437777.
Step Up with Confidence – Your Perfect Mortgage Awaits
Next Time Mortgage
As a Next Time Buyer, stepping into your next property comes with its own set of considerations. Whether you’re upsizing, downsizing, or relocating, understanding your mortgage options is key to making the right move. Unlike First Time Buyers, you may not qualify for certain schemes, but that doesn’t mean there aren’t tailored solutions to suit your needs.
Mortgage Knight’s expert guidance will help you navigate the complexities of securing a mortgage for your next home, ensuring you make informed decisions that align with your financial goals and future plans.
What to Expect When Buying Your Next Property?
When buying your next property, the process involves additional steps compared to purchasing your first home. In addition to finding a new property, you will need to address the fate of your current home. Most Next Time Buyers choose to sell their existing property, using the proceeds to clear their current mortgage and secure a new one for their next purchase.
This can add complexity, as you must manage the sale of your old home alongside the purchase of the new one. It’s crucial to get an accurate valuation and conduct a survey of your property before listing it, which can help streamline the process and instil confidence in potential buyers.
While many costs, such as mortgage and solicitor fees, will be similar to those you encountered with your first home, you should also budget for additional expenses like an Energy Performance Certificate (EPC) and stamp duty. The mortgage application process remains largely the same, but navigating these new elements can be challenging.
Rest assured, our expert team is here to guide you through every step, ensuring a smooth transition from your old home to your new one. Let us help make your next move as seamless and stress-free as possible.
Stamp Duty for Next Time Buyers
When purchasing your next property, you’ll still need to account for stamp duty, though the thresholds and rates differ from those for First Time Buyers. Here’s a detailed breakdown of the stamp duty rates for Next Time Buyers in England:
£0 – £250,000: 0%
No stamp duty is payable on properties valued up to £250,000. This threshold is the same for both first-time and next-time buyers.
£250,001 – £925,000: 5%
Properties valued between £250,001 and £925,000 will incur a stamp duty rate of 5% on the amount that exceeds £250,000. For example, if you buy a property for £500,000, you would pay 5% on £250,000, which amounts to £12,500.
£925,001 – £1,500,000: 10%
For properties valued between £925,001 and £1,500,000, the rate is 10% on the portion of the property value that exceeds £925,000. So, if the property costs £1,200,000, you would pay 10% on £275,000, equating to £27,500.
£1,500,000+: 12%
Any property valued over £1,500,000 will be subject to a 12% stamp duty rate on the amount that exceeds this threshold. For instance, if you purchase a property for £2,000,000, you will pay 12% on £500,000, which totals £60,000.
These rates are specific to England; Scotland and Wales have different stamp duty thresholds and rates.
Adapting to Mortgage Changes for Your Next Property Journey
When moving forward with purchasing your next property, you may encounter changes that could impact your mortgage application. Whether it’s shifts in your personal circumstances or updates from your mortgage provider, understanding these changes is key to securing the best deal.
Evolving Personal Circumstances:
If you’ve moved from a traditional employment setup to a contract-based role, this could affect your mortgage application. Remote work and contractual positions often have different requirements and documentation needs. We offer specialised assistance to present your current work status in the most advantageous light to mortgage providers.
Mortgage Provider Updates:
Your lender’s criteria may have changed since your initial mortgage. With rising property prices and altered lending policies, it’s important to understand how these changes affect your borrowing capacity. We stay updated with industry trends and can help you navigate these adjustments effectively.
Market Trends Impact:
House prices have seen notable increases, such as the 4.5% rise between January 2018 and January 2019. This market shift might influence the amount you can borrow. We can guide you through the current market conditions and how they might affect your mortgage options.
Tailored Solutions:
Collaborating with a mortgage advisor ensures that you receive solutions customised to your evolving situation. We provide insights into how changes in industry standards and lender policies impact your mortgage application, helping you secure the best possible terms.
Why Mortgage Knight is Your Best Choice for Next Time Contractor Mortgages
Unlike standard providers who may view your situation through a traditional lens, we tailor our approach to accurately reflect your unique earning patterns and contractual status.
By leveraging our deep understanding of contractor finances and maintaining strong connections with top financial products, we offer you an honest and tailored mortgage solution.
Whether you’re upgrading or downsizing, our expert team is dedicated to finding the right mortgage for your specific needs. Reach out to us for guidance and unlock the best options available for your next property journey.
Frequently Asked Questions
1. What are the eligibility criteria for a next time buyer mortgage?
To be eligible, you need to have previously owned property and meet standard mortgage requirements, including a good credit score, stable income, and affordability checks.
2. Can I port my existing mortgage to a new property?
Yes, many lenders offer the option to port your existing mortgage to a new property, but you’ll need to check if your current mortgage terms allow for this.
3. What happens if I sell my current property before buying a new one?
You may need to rent temporarily or secure a bridging loan while you search for your new home. Ensure you have a plan for managing the sale proceeds and financing your new purchase.
4. What are the fees associated with a next time buyer mortgage?
Typical fees include stamp duty, solicitor’s fees, mortgage arrangement fees, valuation fees, and possibly early repayment charges if you end your current mortgage early.
5. Can I get a next time buyer mortgage if I have bad credit?
Yes, it’s possible, but you may face higher interest rates or stricter terms. Working with a specialist broker can help you find suitable options despite a poor credit history.
To be eligible, you need to have previously owned property and meet standard mortgage requirements, including a good credit score, stable income, and affordability checks.
Yes, many lenders offer the option to port your existing mortgage to a new property, but you’ll need to check if your current mortgage terms allow for this.
You may need to rent temporarily or secure a bridging loan while you search for your new home. Ensure you have a plan for managing the sale proceeds and financing your new purchase.
Typical fees include stamp duty, solicitor’s fees, mortgage arrangement fees, valuation fees, and possibly early repayment charges if you end your current mortgage early.
Yes, it’s possible, but you may face higher interest rates or stricter terms. Working with a specialist broker can help you find suitable options despite a poor credit history.
