Will I be classed as 1st time buyer?

babysaver

Hello

My OH and me have made the painful decision to split up. We're putting the house on the market and have agreed to split the proceeds 50/50. I've decided to stay with my parents for a few months (I think!) so will be mortgage-free until I buy a new property. As I'm off the property ladder for a few months, does anyone know if I will be classed as a first-time buyer with lenders?

Oh and another thing...I should have equity of around £35000 - debts outstanding (as you can see from my sig) - my share about £30000. Would I be better paying off the loans and having smaller deposit but able to borrow more or keeping on the loans (paid off in 2013) and having less disposable income from lender's point of view?

Thanks...

Murtle

Sorry to hear about your split, but I hope it's what you want. I don't think if your name was on the mortgage papers of your first property that you will be classed as a FTB again. I would probably use some of the money for the deposit and some to repay the loan. Check with lenders that they are happy to lend and how much

x x

babysaver

Thanks Murtle - not really what I want but trying to deal with it as best I can. Throwing myself into money-saving seems a good way to keep my mind off it - and hopefully practical too!
I think I might contact a broker and see what they suggest - I've looked at a few lenders and get a bit confused when they ask about FTB, re-mortgaging etc. Maybe I'll be an expert by the end of this...

MortgageMamma

Sorry to hear you are going though a bad time, and I'm sure that things will get better for you soon. There will be no difference in the mortgage products that you could take as a second time buyer than what a first time buyer could get so the terminology is really not worth worrying about.

As for your debts, I would STRONGLY advise you pay them off with the proceeds of your equity split. You could save another deposit whilst staying with your parents if you needed to, and its also important for you to have a complete fresh start psychologically, as you never know what life's going to chuck at you, good or bad or beautiful!

babysaver

Thanks for the advice MortgageMamma - I know it makes sense to pay off the loans. Didn't think about it as a fresh start though but I will now : - )

Murtle

and a hair cut for fresh starts.....honestly it works wonders......

x x

MortgageMamma

Yes I always chop off the locks when I ditch a partner. And get the st tropez out, a bit of lip gloss and smile like your cheeks are superglued to your ears.

Remember if you look good to everyone else, it helps you feel good inside.

Good luck with your fresh start, and your new lease of life full of opportunties and potential!! (who needs a man!)

MM xxx

babysaver

Thanks again to both of you - that's why this site is so nice. Not just about money-saving really, it feels supportive. Thanks!

MortgageMamma

we've all been there (me more than most as Im completely impossible to live with)

You WILL be ok. Just dont do what I do and go shopping to feel better. Lethal unless you like selling your unwanteds on ebay usually at a loss!