First time buy not a first time buy

mistyarthur

I'm wondering if anyone can offer any advice in my situation.
I took out a mortgage when I was 20 for my mum as she couldn't get one at the time(unwell). She unfortunately hasn't got better so never got the chance to take it back on, so I have held it in my name ever since.
I'm now looking to buy my 'first home' 8 years later, unfortunately for any of the first time buyer situations I don't qualify from my understanding?
I'm now worried I'll come under the new rules meaning I'll pay an extra 3% when I purchase. Another £4-5k onto my purchase price. So as well as missing out on the potential boost from the government they're going to charge me more as well?
Can someone clarify for me if that is the case as neither will be rented but I'm guessing it will just be classed as a second home?
Thank you in advance!

buglawton

If your name has ever been on the deeds/the Land Registry for a previous property then I guess that prevents you being a first time buyer.

marliepanda

Yes it is your second house so you will pay the extra. It is not related to BTL at all, simply second houses. You say neither are rented, but you won't be living with your mother (if you are currently) so having a residential mortgage on your mothers property will not be appropriate.

As you currently have a house (and I assume mortgage) you are not a first time buyer.

racing_blue

Seems like you are already a homeowner.

How quickly can you buy a second house? You still have 6 weeks to beat the Chancellor.

Pixie5740

buglawton wrote: »

If your name has ever been on the deeds/the Land Registry for a previous property then I guess that prevents you being a first time buyer.

Some lenders grant you your house buying virginity back if you've not held a mortgage for X number of years although this doesn't apply to the OP since he appears to still be named on a mortgage.

No good deed goes unpunished. I wouldn't worry too much about missing out on the HTB schemes (schemes being the operative word) although the HTB ISA might have been nice if you were buying further down the line. It does sound as though you're going to get hit with the additional SDLT though.

buglawton

Osborne does not seem capable of inventing a tax that doesn't create collateral damage. I'm looking forward to seeing the back of him.

ScorpiondeRooftrouser

If you have sufficient income to get a second mortgage while still being wholly responsible for your first mortgage, then you don't sound like a person who needs financial help from the government, to be honest. Whatever reason you bought that first house for, you bought it and you own it. If you are wealthy enough to buy a second, the help for first time buyers is really not designed for you.

peld

buglawton wrote: »

Osborne does not seem capable of inventing a tax that doesn't create collateral damage. I'm looking forward to seeing the back of him.

in fairness, it has to be like that. Taxes sometimes arent fair. There will be some people who fall in an unfortunate situation. Whilst it sounds like the OP had good intentions, think of the other people who'd try and get round the system with "family members" in their "other" properties.

Looking at it in black & white, the OP can afford to buy a second home and not even receive rent on the first.

System

buglawton wrote: »

Osborne does not seem capable of inventing a tax that doesn't create collateral damage. I'm looking forward to seeing the back of him.

No chancellor, regardless of party could do that.

Any tax change will always have winners and losers.

Yet another cheap point scoring attempt

pollydollydoodah

I assume you've checked if you be able to get a mortgage whilst still paying your mother's?

As for schemes...sorry to say no you won't qualify as you've had (still got) a mortgage, but as a result it will be classed as a second home.

pinkteapot

Have you spoken to a mortgage broker?

Even if your mum is paying the mortgage payments, lenders will still take that existing mortgage off for your affordability calculations if it's a normal residential mortgage. You may end up having to convert it to a BTL mortgage, unless your salary is so high you can borrow the total of the two mortgages...