Will I be classed as a First Time Buyer?

jollymolly_2

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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Hello,

Please can sombody clarify this for me? My partner allready owns a house and I have never bought before. If we buy a house can we get a first time buyer mortgage?? Somebody told me a while ago that we would still be classed as first time buyers.....is this a load of rubbish???

Thanks in advance!

Crinz

As long as 1 of you has never been named on a property then you can apply for first time buyer mortgage products.

Not sure about stamp duty liability, maybe someone else can clarify this point.

herbiesjp

Stamp duty will apply

jollymolly_2

Thanks for that. Don't quite understand why we can apply for FTB mortgage but stamp duty will apply??

Crinz

Taken from BBC Q&A's when the stamp duty rules came out

http://news.bbc.co.uk/1/hi/business/8585903.stm

My partner is a first-time buyer but I am not. We are about to buy our first home together. Will we benefit? Shaun Pritchard, St Newlyn East, Cornwall.
The guidance from the tax authorities, the HMRC, appears explicit.
"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."
That seems to rule you out as you are buying together - as joint purchasers - and one of you has previously owned a home.
But supposing it was just your partner - a genuine first-time buyer - who was the purchaser of your new home? What then?
The HMRC has advised that if your partner was the only person in whose name the transaction was being recorded, then they could in fact take advantage of the stamp duty relief.
What if you were a married couple? The same would apply.
If the first-time buyer was the sole owner of the newly purchased property and their husband or wife had no share in it, then again the deal could go through without stamp duty being payable.

jollymolly_2

Thank you. At least we can go for a first time buyer mortgage. What generally are the differences between a first time buyer mortgage and others??

Crinz

Some of them offer lower up front costs or cash back incentives. Generally you will find that at lower levels of deposit like 10% they will offer much better value for first time buyers then homemovers.

e.g. at the moment my rates show that with 10% deposit a FTB will get 5.79% but a home mover will get 6.49%.

Different companies have different incentives.

Best speak to a whole of market broker to establish the importance you place in free valuations, cashback etc and find you the most relevant deal

jollymolly_2

Great! Now to find a good whole of market broker!