Am I a 'First time buyer'? Help to buy scheme

joeyp101

Hello,

Just applied for a 5% deposit mortgage with Santander, HOWEVER

About 6 years ago, my father put a flat, that he completely owns himself, and that he rents out, into myself and 2 of my siblings names - to basically get around inheritance tax. We actually have nothing to do with the flat and he still receives the rental income directly from it.

My question is, would this prevent me from getting a first time buyer mortgage? i.e. would I be eligible for the help to buy scheme? or has that completely stuffed things up.

Many thanks for any help.

libf

HelpToBuy is not just for first time buyers, so if you're using that then it doesn't matter if you're classed as one or not. If the rate on your mortgage is for FTBs then that might be more of a problem.

Are you on the mortgage for the flat that your father put in your name?

joeyp101

libf wrote: »

HelpToBuy is not just for first time buyers, so if you're using that then it doesn't matter if you're classed as one or not. If the rate on your mortgage is for FTBs then that might be more of a problem.

Are you on the mortgage for the flat that your father put in your name?

Thanks for your reply.

He bought it in cash about 10 years ago, then transferred it to our 3 names about 6years ago. It never had a mortgage.

I'm applying for a mortgage with Santander for 95% LTV on the Help to buy scheme.

The latest documentation I've had from them 'Help to buy - Mortgage Guarantee Customer Declartion' states 'We confirm that we do not have any interest in any second residential dwelling (wherever situated)'.

In reality, I don't, but on paper (deeds for the flat), I do!

kingstreet

You appear to own a property and are therefore ineligible for the HTB schemes.

You will need a 95% mortgage off the HT scheme. There are several about but you may find it easier to appoint a broker to establish which is best for you.

libf

As kingstreet says, it's not that you're aren't a first time buyer that stop you using HelpToBuy, it's that you will own another property at the same time which is not allowed.

So you're options are 95% mortgage (if you earn enough and it's affordable) or ask to be removed from the deeds of the other property and lose your interest in it.

joeyp101

Sure, thanks guys! massive help

stator

If you claimed benefits without declaring it you would be in big trouble also.

Yorkie1

joeyp101 wrote: »

Hello,

About 6 years ago, my father put a flat, that he completely owns himself, and that he rents out, into myself and 2 of my siblings names - to basically get around inheritance tax. We actually have nothing to do with the flat and he still receives the rental income directly from it.

On a tangent, did he take advice about this arrangement? He's still receiving the benefit from the property so it's arguable that it's a gift with reservation of benefit - and thus remains in his estate for inheritance tax purposes.