Help with first time buyer definition.

nirish

I hope this doesn't sound stupid but stick with me.

I previously owned part share of a house in Scotland but have never held a mortgage, I have since sold my share in this house.

I am now looking to buy a house in England, does anyone know if I can classify as a first time buyer ??

CLAPTON

for what purpose?

nirish

For the purpose of buying a mortage and also with regards to the payment of stamp duty.

I guess that is two different issues but I would appreciate an answer about both.

Thanks

GMS

For stamp duty anybody who has EVER owned a property will not be classed as FTB

Lenders differ. Some will say as above, others if not held a mortgage within x mths.

nirish

Is it likely to make much difference to the mortgage I can get whether I am classified as a first time buyer or not ??

kingstreet

nirish wrote: »

Is it likely to make much difference to the mortgage I can get whether I am classified as a first time buyer or not ??

Not really. Banks and building societies are interested in attracting all types of customers now. The idea of lumping all your best stuff on FTBs is a bit of a thing of the past TBH.

firsttimetom

kingstreet wrote: »

Not really. Banks and building societies are interested in attracting all types of customers now. The idea of lumping all your best stuff on FTBs is a bit of a thing of the past TBH.

If anything it might even be the opposite. Some of the 'First Time Buyer Special Mortgages' that I have seen seem to attract a higher rate of interest than normal mortgages from the same lenders.

kingstreet

firsttimetom wrote: »

If anything it might even be the opposite. Some of the 'First Time Buyer Special Mortgages' that I have seen seem to attract a higher rate of interest than normal mortgages from the same lenders.

The logic is that FTBs probably borrow a bit less, so lower set-up costs (free/refunded valuation fees) and cashbacks help more than the best rate.

If you are borrowing more than £150k or are looking for a longer-term deal, the converse is likely to apply.

nirish

With regards to the stamp duty side of things.

I'm looking to buy with my other half, where would I stand if the house was bought entirely in her name and she has never owned a property.

Obviously this would leave me rather exposed in terms of any money I put into the house for deposit or towards her mortgage.

Yorkie1

If your OH has never owned / inherited any property, and buys the house in her name alone (and therefore based on her income alone), she will count as a FTB for SD purposes.

nirish

OK two questions then, is there any chance of running into trouble for funding the OH both to place the deposit and make the payments. I guess its no different to getting help from parents.

Secondly if the house and mortgage were solely in her name to avoid stamp duty, would we be able to add my name to both a couple of years down the line perhaps with a re-mortgage and would adding my name incur any sizeable costs ?