Photo courtesy of www.rightmove.co.uk
The second time buyer is one who has previously owned a property, but does not have one presently and wants to buy one. The second time buyer is different from that of a second mortgage because the latter refers to a person getting his second property while keeping his first one.
A second time buyer may have some benefits and disadvantages. If he sold the property he previously owned, he can use the profit that he made as a deposit to the property that he is planning to buy. A bigger deposit is definitely better because the payments will be significantly less. Also, mortgage companies look favorably on borrowers who borrow a small portion of the property’s value. Also, most second time buyers were able to keep up repayments on their previous mortgage, which will be reflected on their credit records. This will then make them a good bet for those mortgage lenders.
However, unlike a first time buyer who has never had any experience of owning a property, a second time buyer has fewer money saving opportunities than first-time buyer. Offers like “shared-ownership schemes” or FTB mortgages are designed by mortgage companies in order to help people purchase their first property.
This should not discourage second time buyer,s however. It is because there are some mortgage companies that regard mortgage applicants who have not owned a property for three years as first time buyers. Thus, it is still worth the effort to shop around for properties and prospect mortgage companies.