First time buyer but named on BTL mortgage

stevenf86

My girlfriend and I have had an offer accepted on a house yesterday.

We have a 40% deposit and want to borrow a low salary multiple. We have an agreement in principal.

My girlfriend has just found out that she is named on a buy to let mortgage for a flat she part owns with her parents and sister that is rented out. She previously thought she was named on the deeds but not the mortgage. There is just 1 year left to run on the BTL mortgage, all 4 family members are on the mortgage.

Could this lead to any complications in application?
Am I right in thinking that this means we wouldn't be eligible for first time buyer offers (particularly interested in Nationwide)?

Also, the vendors of the house we are buying have not yet found a house to buy. Should we wait for a chain to be formed before submitting a full mortgage application?

Thanks in advance for any help!

LittleVoice

stevenf86 wrote: »

My girlfriend and I have had an offer accepted on a house yesterday.

We have a 40% deposit and want to borrow a low salary multiple. We have an agreement in principal.

My girlfriend has just found out that she is named on a buy to let mortgage for a flat she part owns with her parents and sister that is rented out. She previously thought she was named on the deeds but not the mortgage. There is just 1 year left to run on the BTL mortgage, all 4 family members are on the mortgage.

Could this lead to any complications in application?
Am I right in thinking that this means we wouldn't be eligible for first time buyer offers (particularly interested in Nationwide)?

Also, the vendors of the house we are buying have not yet found a house to buy. Should we wait for a chain to be formed before submitting a full mortgage application?

Thanks in advance for any help!

Whether Nationwide disregard BTL mortgages, I don't know but others with such knowledge may be along soon. However Nationwide, in their Jargon Buster, say

First Time Buyer
A person buying their first property.

So, contrary to your thread name, surely she isn't a "first time buyer" if she owns a property which was purchased rather than inherited. The property has been bought, and she is on the mortgage and I would have thought would have signed documents in order to be named.

Atidi

stevenf86 wrote: »

My girlfriend and I have had an offer accepted on a house yesterday.

We have a 40% deposit and want to borrow a low salary multiple. We have an agreement in principal.

My girlfriend has just found out that she is named on a buy to let mortgage for a flat she part owns with her parents and sister that is rented out. She previously thought she was named on the deeds but not the mortgage. There is just 1 year left to run on the BTL mortgage, all 4 family members are on the mortgage.

Could this lead to any complications in application?
Am I right in thinking that this means we wouldn't be eligible for first time buyer offers (particularly interested in Nationwide)?

Also, the vendors of the house we are buying have not yet found a house to buy. Should we wait for a chain to be formed before submitting a full mortgage application?

Thanks in advance for any help!

How is it she has only just found this out?
Wouldn't she have had to sign the mortgage application to have been given the mortgage?

Or is she saying the mortgage was obtained fraudulently without her knowledge?

stevenf86

LittleVoice wrote: »

So, contrary to your thread name, surely she isn't a "first time buyer" if she owns a property which was purchased rather than inherited. The property has been bought, and she is on the mortgage and I would have thought would have signed documents in order to be named.

True. The property was purchased some time ago by her parents, with her involvement extremely minimal. She will have signed forms I'm sure, and she realises she should have paid more attention to the details!

I meant first time buyers as in neither of us have never owned a residential property, and until today I thought neither of us had had a mortgage. I know legally she would not be classed as a first time buyer, but banks seem to vary quite a bit in their definition of what a first time buyer actually is.

stevenf86

Atidi wrote: »

How is it she has only just found this out?
Wouldn't she have had to sign the mortgage application to have been given the mortgage?

Or is she saying the mortgage was obtained fraudulently without her knowledge?

She does remember signing some forms when her parents bought the property quite some time ago, and realises she should have paid more attention to what these were, and the implications.

laidbackgjr

A quick look at the Nationwide website, and it has FTB's defined as 'If you've not had a mortgage in the last 3 years.'

So on that basis I'd say no. Has your partner been declaring the income from the BTL to the tax office each year, if so, you could find that a good auditable trail of BTL income could help with getting a mortgage.

kingstreet

She isn't a FTB in Nationwide terms.

You should wait for the chain to form up, before you spend money on mortgage/legal fees.

LittleVoice

laidbackgjr wrote: »

A quick look at the Nationwide website, and it has FTB's defined as 'If you've not had a mortgage in the last 3 years.'

So on that basis I'd say no. Has your partner been declaring the income from the BTL to the tax office each year, if so, you could find that a good auditable trail of BTL income could help with getting a mortgage.

Could you post a link to that definition, please? The link to mine is http://www.nationwide.co.uk/mortgages/calculators/mortgageglossaryofterms.htm

The definition you found means that, contrary to what my solicitor reported when I took out my only mortgage, I was a first time buyer because I had bought my first house outright.

I'd also be a first time buyer now as I paid mine off many years ago.

silvercar

LittleVoice wrote: »

Could you post a link to that definition, please? The link to mine is http://www.nationwide.co.uk/mortgages/calculators/mortgageglossaryofterms.htm

The definition you found means that, contrary to what my solicitor reported when I took out my only mortgage, I was a first time buyer because I had bought my first house outright.

I'd also be a first time buyer now as I paid mine off many years ago.

I don't see how you can be a first time buyer twice.

LittleVoice

silvercar wrote: »

I don't see how you can be a first time buyer twice.

I agree but, according to laidbackgjr, there's a definition on the Nationwide website which suggests you could be a first time buyer a number of times. Apparently they are not counting buying without a mortgage and they are not counting a mortgage which was cleared more than 3 years before.

However a web address for that has not been provided whereas there is one for the commonsense definition of "A person buying their first property".