Are you thinking of buying a second property? Congratulations.

Whether it’s a second home for holidaying in, or a second property to rent out, there are some things you should consider before diving in headfirst.

1. Is your income steady and realistic?

Becoming a second homeowner comes with double the financial responsibility, for example if you are still paying an existing mortgage, you may now be paying two unless you have available cash set aside.

This may also mean paying double the bills for home insurance, tax, and utility outgoings. Why not try creating a detailed budget so that you have a clear understanding of the financial impact of buying a second property? … before diving in headfirst. 

2. Your credit history could be a big factor

Credit history is a big factor when it comes to buying properties. Having financial stability in your first property is more than important, as all factors will be looked at before lending will let you borrow any money to secure your second property. 

3. Why are you buying a second property?

You may need to have a reason ready as to why you are buying a second property, as the lender usually asks you this before deciding on whether they will lend you the money or not. 

The lender may also require some proof, that once the purchase of the second property in complete, one the properties will still serve as your main home, according to Pete Mulgeston. 

4. Distance requirements

Lenders usually will take into consideration the distance between each property. As it can be viewed as riskier depending on how far away the second property is in comparison to the first, due to currency fluctuation and complex foreign property markets. 

Go for a property you love and will love forever
Choosing a second property can be hard, as you want it to be perfect. You may be investing in a property so that you can refurbish and sell it, or maybe your second property is a holiday home in your dream destination. Whatever the reason it is so important that you choose the right property for you! 

When the potential property owner can show the lender how the second property will benefit them, they are more likely to become successful in the buying process. For example, if your main home is situated 2 hours from your place of work, the lenders will understand that the commute may be too much and give you the opportunity to buy a flat closer to your work during the working week. 

5. Renting out your second home could affect your eligibility

Lots of people who have second properties in holiday destinations choose to let them out for part of the year. Although depending on your lender they may not allow you to rent out your second property. Choosing to make a case for renting out your second home may make lenders look at your application more favourably. 

6. Go for a property you love and will love forever

Choosing a second property can be hard, as you want it to be perfect. You may be investing in a property so that you can refurbish and sell it, or maybe your second property is a holiday home in your dream destination. Whatever the reason it is so important that you choose the right property for you! 

Is 2022 your year to become a second homeowner? Make your dreams and reality and get in contact with one of our mortgage experts today @mortgagepropeller