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Step Up with Confidence – Your Perfect Mortgage Awaits

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.

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Watford Contractor Mortgage Process

Understanding Commercial Financing

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.

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.

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.

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.

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

Watford Contractor Mortgage Process

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

Ans: 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.

Ans: 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.

Ans: 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.

Ans: 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.

Ans: 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.