Am I A First Time Buyer?!?!

ryanguevara1983

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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I bought a house with my wife a few years ago. We separated and sold the house.

Most of the mortgages I can afford are for first time buyers (e.g. smaller deposit requred).

As I am now on my own, and it will be the first time that I have been the sole home owner, am I a first time buyer??

mbga9pgf

ryanguevara1983 wrote: »

I bought a house with my wife a few years ago. We separated and sold the house.

Most of the mortgages I can afford are for first time buyers (e.g. smaller deposit requred).

As I am now on my own, and it will be the first time that I have been the sole home owner, am I a first time buyer??

No. Check the Treasury's definition. You can try and get away with it, but is 1% worth the lingering worry of getting done for fraud?

http://www.hmrc.gov.uk/budget2010/sdlt-qa-tech-1545.pdf

Q5. I previously bought a house jointly with my spouse/partner. The partnership has broken up so can I be treated as a first time buyer?
A. No. Where the individual has previously acquired an interest in a residential property as a joint tenant or a tenant in common the individual is not a first time buyer.

timmyt

ryanguevara1983 wrote: »

I bought a house with my wife a few years ago. We separated and sold the house.

Most of the mortgages I can afford are for first time buyers (e.g. smaller deposit requred).

As I am now on my own, and it will be the first time that I have been the sole home owner, am I a first time buyer??

um....the red writing.....sorry, you have owned a property. Case closed.

The Government sounded good at lunch, but if you are unhappy, don't vote Labour.

Sorry - you may not be meaning stamp duty, just talking about FTB by coincidence with the news

Richard_Webster

Quote:
Originally Posted by ryanguevara1983
I bought a house with my wife a few years ago. We separated and sold the house.

Most of the mortgages I can afford are for first time buyers (e.g. smaller deposit requred).

As I am now on my own, and it will be the first time that I have been the sole home owner, am I a first time buyer??
No. Check the Treasury's definition. You can try and get away with it, but is 1% worth the lingering worry of getting done for fraud?

http://www.hmrc.gov.uk/budget2010/sdlt-qa-tech-1545.pdf

What have the new SDLT rules got to do with mortgages for first time buyers?

G_M

'First Time Buyer' is a description used in various situations, by various people/organisations/industries.

They can, and do, define it differently to each other.

The Treasury definition is clear...when applied to treasury functions (SDLT etc).

Estate Agents have a completely different definition, as do mortgage lenders.

Most mortgage lenders will consider you a FTB if you currently have no mortgage and no property. You will therefore be eligible for most FTB mortgages.

However, be honest on your mortgage application form so as to avoid any doubt or future charge of fraud. Provided you declare honestly that you currently have no property (or mortgage) but that you used to have one (sold on [date]), then no one can accuse you of fraud.

It is up to the lender to decide if you are eligible in the circumstances you declare (but most will).

Squish_21

If you have EVER bought a house you are not a FTB.

happyhunter

Basically, if you have any doubt at all, no matter how little, then you can count yourself NOT a FTB. - this is how I read it anyway.

G_M

Squish_21 wrote: »

If you have EVER bought a house you are not a FTB.

I don't dispute that that is the logical definition of the English. FTB = a house buyer who is buying for the first time.

However, the OP said "Most of the mortgages I can afford are for first time buyers " so was clearly asking about lenders' definition and policy.

Most mortgage lenders/banks, when they speak of FTBs, or restrict some of their mortgage products to FTBs only, actually define that as buyers who are not redeeming an existing mortgage, or switching a mortgage, and who are not selling an existing property. ie people who currently have no property or mortgage.

It may be (in fact it is) a poor definition, and an inaccurate use of the English language, but that's what they mean.

If/when an IFA comes along, I'm sure they will confirm this.

Even more bizarrely, a prospective mortgage customer who lives, say, with his parents but has a Buy-to-let mortgage on a property he rents out, may be permitted to take out a FTB mortgage because he does not have an existing residential mortgage, or own an owner-occupier property.

Mad, but true!

(note: the above is all generally true but may not apply to all lenders)

nancy_c_b

I agree with G_M. My friend (still) owns a property and recently bought a second property house on a joint mortgage with her boyfriend. Because he had never owned property, they were offered FTB mortgages. It depends what the lender's view is.

bryanb

Can a person who has only ever inherited a house be classed as a first time buyer? (for SDLT)

G_M

bryanb wrote: »

Can a person who has only ever inherited a house be classed as a first time buyer? (for SDLT)

So far as the new SDLT rules are concerned, see here:

the purchaser must not, either alone or with others, have previously acquired a major interest in land which includes residential property, or an equivalent interest in land situated anywhere in the world.

(My bold/underline)