What defines a First Time Buyer

Fay1979

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

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When I got married I moved cities, sold my house and have been renting with my husband for the last 22 months. Might seem a silly question but am I again classed as a “first time buyer” since I have no mortgage and am not in a chain.
To complicate things further, my husband inherited a house about 18 months ago which he continues to rent to the long term tenants. Is he still classed as a “first time buyer” since he has never bought a property and never had a mortgage although does now own a house.

We intend to purchase a property jointly, are “we” classed as first time buyers or not, what definition is used?

casper_g

I should think the definition of a first time buyer will depend on who gives the definition! For a bank or building society offering a special mortgage deal, they would set out what they mean by the terms they use. For the government's proposed stamp duty exemption for first time buyers under £250 000, the government will decide.

Another question that occurs to me is, whatever definition applies to the stamp duty exemption (as an example) how would they know you own another house? I suspect the land registry is not geared up to provide information based on a search by name, and searching by name alone would be pointless anyway, at least for all but the most unique names.

sarah_elton

Been talking about this on the house prices board (vested interest as currently buying at £231k, have both previously owned our own properties but neither of us has owned since Feb 09).

For HSBC and our mortgage, we count as FTBs.

Apparently, for land registry data we'll count as FTBs (land reg = someone who hasn't owned in six months).

For the Govt's supposed stamp duty break? Bet we don't count as FTBs.

princessamy86

I would class first time buyers as just that: people who have never bought or owned a property before. Anyone else is a buyer with no chain. In my experience, first time buyers need a lot of hand holding and are generally quite naive about the process involved. People who have bought before are more aware about everything.

Estate_Agent

In regards to knowing if a buyer owns another property, a simple credit search will bring up details of any credit. I believe these days they are broken down into credit cards, loans and mortgages etc. As long as someone hasn't cleared a mortgage, this would work and could be done relatively easily by the solicitors.

kmmr

In Australia, where there are FTB subsidies, it is anyone who has had never had a property registered in their name. And I think if you buy as a couple, if one party has owned before, then you don't qualify.

tootsmyboots

well it's just announced it as FTB, so where will i find a clarification of what this is? I have certainly bought before so in that sense I understand I am not buying for the first time when i get this next house. But I do not own a property at the moment. Asked my solicitor this morning and even she didnt know! Will wait with baited breath to find out...

sarah_elton

tootsmyboots wrote: »

well it's just announced it as FTB, so where will i find a clarification of what this is? I have certainly bought before so in that sense I understand I am not buying for the first time when i get this next house. But I do not own a property at the moment. Asked my solicitor this morning and even she didnt know! Will wait with baited breath to find out...

Just called my solicitor and she doesn't know either, but suspects we won't qualify as it will exclude anyone who has completed on a property purchase in the past.

Gutted. I can understand them wanting to exclude people who have already made a lot of money in the housing boom. But I bought in 2006 and sold in 2009 and lost around £20k as a result. If I'd never bought, that's some more I can add to those losses.

Ah well, sh*t happens!

Geordie_bear

Cheers Darling thanks for getting my hopes up :mad:

shane42

ftb= name not on land registry

googler

Definition could become important with Budget announcement of nil Stamp Duty up to £250k for FTBs..... see BBC news at www.bbc.co.uk for bullet points from the budget.