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What do most mortgage companies define as a First Time Buyer
mortgagewoes
Posts: 8 Forumite
Let's say I buy a flat with cash (without a mortgage).
I rent it out for X months.
I then decide to buy a house with a mortgage.
This feels like a silly question, but would mortgage companies consider me to be a first time buyer?
That is to say, what is the strict definition of FTB for the purpose of gaining a mortgage? Does one have to have had a previous mortgage? Or simply owned a property?
The other variables I can think of - do any of these make a difference?
1. Whether I live in or rent the flat?
2. How many months (X) I hold the flat for?
3. Whether I sell the flat on or raise a BTL mortgage on it to release capital to buy the house?
4. Different mortgage companies? (e.g. I note that Nationwide - Google "first time buyer definition" - define FTB on the basis of having a *mortgage* in the last 3 years, *not* in terms of simply owning a property.
I rent it out for X months.
I then decide to buy a house with a mortgage.
This feels like a silly question, but would mortgage companies consider me to be a first time buyer?
That is to say, what is the strict definition of FTB for the purpose of gaining a mortgage? Does one have to have had a previous mortgage? Or simply owned a property?
The other variables I can think of - do any of these make a difference?
1. Whether I live in or rent the flat?
2. How many months (X) I hold the flat for?
3. Whether I sell the flat on or raise a BTL mortgage on it to release capital to buy the house?
4. Different mortgage companies? (e.g. I note that Nationwide - Google "first time buyer definition" - define FTB on the basis of having a *mortgage* in the last 3 years, *not* in terms of simply owning a property.
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Comments
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No. If you own or have owned a property you will be considered a HomeMover.mortgagewoes wrote: »This feels like a silly question, but would mortgage companies consider me to be a first time buyer?
There are odd exceptions.I am a mortgage broker. You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice. Please do not send PMs asking for one-to-one-advice, or representation.0 -
When we took out our mortgage with the Woolwich, we were classed as First Time Buyers - my boyfriend had never owned a property before, I did own a property but had never had a mortgage. Take from that what you will!Cleared my credit card debt of £7123.58 in a year using YNAB! Debt free date 04/12/2015.
Enjoying sending hundreds of pounds a month to savings rather than debt repayment!0 -
HSBC are an exception. You're come under FTB for their products if you don't currently own properties. We moved from rented to bought and they treated us as FTBs, even though we'd both previously owned properties.0
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