Could I be classed as a first time buyer

mattwilson1981

My partner and I bought a house as a joint mortgage when we were 20. Now 11 years later and we have just split up... I want her to keep the house because it's our children's home and I'm going to find somewhere new to rent for now.

Now I don't want to rent long term, I want another home for my children and that won't be in a place where we have restrictions on what we can do and have inspections and the like.

My question is since I've never had a property in just my name would a single mortgage application possibly be seen as a first time buyer so I could get a 95% mortgage as the deposit will be much more achievable in a shorter timeframe.

Thanks
Matt

blueberrypie

You've owned a property, even if you owned it jointly - so no, you will not be considered a first time buyer.

GMS

A lender may class you as a first time buyer as they have their own definitions.

For Stamp Duty purposes you will not be as you have previously owned a property

mattwilson1981

GMS wrote: »

A lender may class you as a first time buyer as they have their own definitions.

For Stamp Duty purposes you will not be as you have previously owned a property

Thanks, I'd be looking under 100k anyway so an extra 800-1000 for stamp duty won't be a show stopper?

betmunch

mattwilson1981 wrote: »

Thanks, I'd be looking under 100k anyway so an extra 800-1000 for stamp duty won't be a show stopper?

Erm, thats 800-1000 more than you would need to pay then!

Caz3121

Is your name coming off the existing mortgage? If not your income will need to be able to support both mortgages (even if you would not physically be paying the other one)

Horseunderwater

I'd say no you could not be a 1st time buyer. I had similar problems when I took out a joint mortgage with my OH in 1992. I had inherited a 1/2 share in parental property, but many lenders said I was not able to be classed as a 1st time buyer as I owned property. However, I had not bought it, so I kept persisting until I did find a lender willing to accept that I really was buying a house for the first time. But as you have already bought and part owned property it should be a no!

mattwilson1981

betmunch wrote: »

Erm, thats 800-1000 more than you would need to pay then!

Well by the time I get it together the condems will have scrapped the limit on stamp duty I think

betmunch

The 0% banding is upto 125k after the FTB incentive ends. Are you looking so far in the future your expecting that the change? Or are you getting it confused with the changes at the end of this month?

mattwilson1981

Okay so this situation has never been resolved and I need to do something about it... so my new altered question is thus:

Having found mortgage lenders that will lend 95% I want to know where I stand on already being named on the mortgage with my ex. Our house is worth around £200,000 and she can afford it on her own with tax credits topping up her money a little, however she can't afford to buy me out or even give me any of my equity because doing so would tip her finances over the edge and the kids would suffer. Because of this I will remain named on the mortgage and want to know how badly this will affect a mortgage application in my own name. Am I right in thinking that my salary must be able to cover the new mortgage payments AND the other mortgage, or as I've been told does it have to cover the new mortgage and half of the other mortgage?

Help please
Thanks

martinsurrey

You and your ex will be jointly and severably liable for the original mortgage, so the whole amount will count against you for the purposes of a new application.

You will 100% not be counted as a first time buyer, you will be registered as an owner at land regisrty and be on the mortgage lender (shared) databases.

sorry to not have any good news.