Mortgage question

softie

I'm looking to buy a property as an investment. I live with my wife in what was her house - I'm not on the deeds and don't really want to be; its her house - and I'm looking to buy a property as an investment. Having just spoken to a mortgage advisor at Woolwich (i bank with Barclays), they've suggested I can't buy as a first time buyer as I wouldn't using it as my residence, but neither can I buy as a buy to let because I'm not a current house owner.

This must be a scenario that comes up a lot when couples marry but also have previous property?

Separately, the likely tenant would be my brother which I understand you can't rent to family on buy to let mortgages but thats not definite so I'll cross that hurdle if I can buy somewhere first.

MortgageMamma

Yes you can buy a property on a regulated buy to let basis. Some lenders insist you already own your home, some are more flexible and understand real life situations like your own.

Your brother living in it would be undesirable to some lenders, again some will be fine with it, its just a matter of finding the right lender.

The "advice" from Woolwich is questionable, and in my opinion their service levels are horrendous.. avoid if you can. I had a client come to me last week who tried to get a mortgage with them, they'd kept her waiting 6 weeks without asking for additional info. The adviser went AWOL he was never in when she phoned and to top it off they lost her wage slips that I needed to help her. Be warned, anything out of the ordinary they screw up regularly. Competitive product but nothing but hassle in my opinion.

Speak to a whole of market broker who is experienced with buy to lets for first time buyers.

softie

Thanks, looks like I should shop around.

With respect to the new 3% extra on stamp duty, I'm assuming that as I'm looking to buy to let I'll have to pay, but when reading the news articles and Q and As on it, they all mention "owning" a 2nd property; something I won't actually do.

Will I be liable for it?

amnblog

Yes, subject to affordability you should be able to get lending (though not with Barclays).

Yes, you will pay the 3% extra

HMRC say...

'Where an individual with a spouse or civil partner purchases an interest in a dwelling and their spouse or civil partner is not a joint purchaser, the spouse or civil partner will be treated as a joint purchaser in respect of the transaction.'