First time buy not a first time buy

mistyarthur

Thanks for the help everyone. For the people that seem to think I'm someone rich looking for a cheap buy I'm not. The current mortgage is £150 a month. I've spoken to a broker and they say I'll be able to get around £150k in a mortgage. The money in the current house is not mine despite how it obviously is on paper. My mum worked her whole life for that and ill health is the thing that prevented her from taking on the mortgage. First time buyers help/the extra stamp duty is designed to make it easier for people to purchase 'their' first house which is what I am trying to do.

ScorpiondeRooftrouser

mistyarthur wrote: »

Thanks for the help everyone. For the people that seem to think I'm someone rich looking for a cheap buy I'm not. The current mortgage is £150 a month. I've spoken to a broker and they say I'll be able to get around £150k in a mortgage. The money in the current house is not mine despite how it obviously is on paper. My mum worked her whole life for that and ill health is the thing that prevented her from taking on the mortgage. First time buyers help/the extra stamp duty is designed to make it easier for people to purchase 'their' first house which is what I am trying to do.

The presumption is that you are the sole owner of that house, which you bought individually, and you are the mortgage payer. If that is not correct then I think you need to explain the exact circumstances of the first mortgage. Was it taken out to buy a new property, or a mortgage taken out on a property your mother was already living in? What are the ownership details of that house?

The government pretty much has to assume things are as they are on paper - because in law, that is how they are. Your intentions cannot be taken into account.

marliepanda

Well, a little over a month ago you were only given a 60k
Mortgage option and wanted to buy 50% of a shared ownership property. Now you have 150k agreed, so you should be laughing! Why are you not laughing? Your financial position has improved dramatically!

https://forums.moneysavingexpert.com/discussion/5252527

mistyarthur

I am the sole owner as my mum had to downsize. The money was given to me to purchase the house as she was unable to work so couldn't get a mortgage. At the time it seemed like the right thing to do but it has excluded us from many things designed to help her since then, and she is still unable to take the mortgage on unfortunately. It's not so big that it affects me getting a smaller one myself but extending my purchase power by 20% makes a big difference to the area as you'd imagine.
I understand I won't qualify for first time buyer schemes unfortunately. I was just curious about the 3% stamp duty increase. An estate agent told me if she sells within 18months I'd receive it back?

mistyarthur

marliepanda wrote: »

Well, a little over a month ago you were only given a 60k
Mortgage option and wanted to buy 50% of a shared ownership property. Now you have 150k agreed, so you should be laughing! Why are you not laughing? Your financial position has improved dramatically!

https://forums.moneysavingexpert.com/discussion/5252527

Wow time flies for you that was nearly a year ago...
That was also from c & g my current provider who with my record of payments you would have thought most keen. Since then I have spoken to a broker who suggested other lenders such as the tsb and I have continued saving for a 10% deposit which I have now reached

marliepanda

mistyarthur wrote: »

I am the sole owner as my mum had to downsize. The money was given to me to purchase the house as she was unable to work so couldn't get a mortgage. At the time it seemed like the right thing to do but it has excluded us from many things designed to help her since then, and she is still unable to take the mortgage on unfortunately. It's not so big that it affects me getting a smaller one myself but extending my purchase power by 20% makes a big difference to the area as you'd imagine.
I understand I won't qualify for first time buyer schemes unfortunately. I was just curious about the 3% stamp duty increase. An estate agent told me if she sells within 18months I'd receive it back?

If you sell the house you will. It's your house.

It doesn't matter what agreement you have. As you say, on paper it's your house. You have to pay for it. If your mum so chooses, you have to pay the mortgage, not her. Do you live with your mother?

mistyarthur

marliepanda wrote: »

If you sell the house you will. It's your house.

It doesn't matter what agreement you have. As you say, on paper it's your house. You have to pay for it. If your mum so chooses, you have to pay the mortgage, not her. Do you live with your mother?

No not anymore I don't. I did at the purchase time.

marksoton

mistyarthur wrote: »

No not anymore I don't. I did at the purchase time.

Then you need to be very careful. Essentially you are a landlord. And also potentially committing mortgage fraud depending on your product.

ScorpiondeRooftrouser

mistyarthur wrote: »

I am the sole owner as my mum had to downsize. The money was given to me to purchase the house as she was unable to work so couldn't get a mortgage. At the time it seemed like the right thing to do but it has excluded us from many things designed to help her since then, and she is still unable to take the mortgage on unfortunately. It's not so big that it affects me getting a smaller one myself but extending my purchase power by 20% makes a big difference to the area as you'd imagine.
I understand I won't qualify for first time buyer schemes unfortunately. I was just curious about the 3% stamp duty increase. An estate agent told me if she sells within 18months I'd receive it back?

So was the house purchased with a large lump sum of cash your mother gave to you plus a small mortgage?

marliepanda

mistyarthur wrote: »

No not anymore I don't. I did at the purchase time.

So you are renting a property, but unofficially. Not declaring it to your mortgage lender. Are you declaring the tax income? I imagine not.

So Basically you're circumventing lots of fees and taxes but are complaining about not getting subsidised