Second-time buyer
A borrower who has previously owned a primary residence and is purchasing a new property, often by selling the previous one. Their file frequently involves a bridge loan or a chain sale, and their down payment typically comes from the proceeds of the prior sale. They are not eligible for the first-time-buyer PTZ.
Key points
- Not eligible for the first-time-buyer PTZ; other aids may apply depending on income and zone.
- Down payment typically comes from the net proceeds of the previous property sale.
- A bridge loan allows purchasing before selling, avoiding a double move.
- A chain sale synchronises two transactions and carries timing risk.
Frequently asked questions
How does a second-time buyer finance a purchase before their sale completes?
They typically use a bridge loan, an advance against the estimated value of their current property granted by the bank for twelve to twenty-four months. This short-term credit provides the funds needed to sign the preliminary contract on the new property without waiting for sale proceeds. Bridge loan interest is added temporarily to their repayment charges.
What specific risks should the broker anticipate on a second-time buyer file?
The main risk is a delayed sale: if the previous property does not sell in time, the bridge loan must be extended and financial charges will rise. The broker therefore checks that the value used for the bridge loan is realistic and that the borrower can temporarily absorb both charges if the sale is delayed.
What is the difference between a standalone bridge loan and a combined bridge loan?
A standalone bridge loan covers only the transition period without an associated long-term loan; it is repaid in full at sale. A combined bridge loan is coupled with a standard mortgage for the new property: during the bridge period the borrower pays only bridge interest, then switches to normal amortization once the sale completes.
In practice
A couple owns a flat valued at €280,000 with €40,000 outstanding. The bank can grant a bridge loan of around €168,000 (60% of net value) to fund the deposit and part of the new property price before their final sale.
Official sources
- Obtaining a mortgage loan · Service-Public.gouv.fr
- Mortgage credit (official guide) · Service-Public.gouv.fr