Definition of a first time buyer...

the_salmon

MoneySavingExpert.com Official Insert:

If you want to know what constitutes a first time buyer following changes to Stamp Duty in the Autumn Budget 2017 read our news story:

Autumn Budget 2017: Stamp duty axed for most first-time buyers

Back to the original post...

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It may seem a wierd and simple question...to explain my situation.

Currently own a house which I am looking to sell to buy another house due to relocating for a new job. Likelehood is that the potential profit I would make on my house would be insufficient to act as a deposit for a house in the area i am looking to move to. Essentially I will only accept an offer on my house if i can get enough out of it to act as a deposit, but im not too confident of that happening.

I have a lodging agreement in a friends house so am not in a hurry to sell.

As my salary has increased with the new job I would be in a position to get a good priced house based on my salary, however it all falls down as i would have very little deposit to put down which would impact on the quality of mortgage deal I would get.

So I have looked into new builds, after a recomendation from my temporary landlady who works in property. A lot have the Government shared equity scheme which is available to first time buyers, which essentially rules me out.

But my question is if i sold my house, banked the money and rented for a bit, then made an offer on one of these homes then would i be eligible to get a house on the shared equity scheme?

Thanks guys

chickmug

Not always so as I know of a couple who recently went after SO type of housing and were told that even though they owned many years ago they could be classified as FTB for the scheme with a HA.

Blacksheep1979

Ok, maybe various different organisations might define it differently but then they are fools too - by definition first time is first time. Once you've lost your virginity you can't get it back...

the_salmon

Hence the rider with the question that it may seem a stupid question.

Flipping it round though you could, for this purpose, simply define a first time buyer as someone who at the time hasnt got a property.

Following on then, what mechanism is in place to dis-prove that i would be a first time buyer? If i sold my house, banked the cash, rented for a bit, then went to go for this scheme, how would anyone know I had previously owned a property?

chickmug

Blacksheep1979 wrote: »

Ok, maybe various different organisations might define it differently but then they are fools too - by definition first time is first time. Once you've lost your virginity you can't get it back...

So perhaps on this quaetion what the OP needs to do is phone and ask as any advice given on this forum should be taken with a pinch of salt.

PS Can't a surgeon get it back if you are female:D

mbga9pgf

The land reg and ONS define FTB as someone who is purchasing a property that have effectively been off the ladder for more than 3 months (sell to rent and temporary sale to rent) Last count, previous owners accounted for an estimated 20-30% of the 'FTB' market.

Has a lot to do with inflated FTB salaries.

And yes, I contacted the ONS directly about this issue.

Richard_Webster

Definitions like this will vary from situation to situation and OP will simply have to check which definition is applicable to his particualr case.

Pigster_2

If the OP had inherited a house he could own a property without having bought it, therefore could still be a first time buyer when he eventually bought.

Jowo_2

http://www.housingcorp.gov.uk/upload/pdf/FTBI_Buyers_Guide_Version_2_060906.pdf

It indicates the First Time Buyers' Initiative is only for genuine first time buyers looking to buy for the first time, though it will consider those in relationship breakdowns may be considered.

In the summary of schemes published here, it does reiterate the relationship breakdown aspect of the criteria as an example but that is couched more broadhly as 'previous home owner who can't now afford to buy without help (perhaps because you have broken up with your partner).'

http://www.direct.gov.uk/en/HomeAndCommunity/BuyingAndSellingYourHome/HomeBuyingSchemes/DG_4001347

sarah_elton

Interesting thread... OH and I are currently renting, but have both (separately) owned property previously.

When I look at mortgage calculators online, I never know whether to put FTB or "Home Mover" in our type, since we're not selling as well as buying. They need another option on the list.

Andypandypuddinanpie

What i'd like to know is...if you have never had a mortgage on a house or have been given a house as part of a divorce settlement and you've never had a house in your name before, are you then classed as a first time buyer?