Mortgage - First Time Buyer and Self Employed

orage270

Hi

I was wondering whether someone could help me out please?

I have owned properties and so has my husband, however, never together. Are we classed as FTB? It soo difficult to find out who classes for this? The last property in his name was 8 years ago and mine was 4.
Also he is self employed, how does this work we want to get out of renting and start building a future for our kids, the other issue is that he is 50 this year and I understand it starts getting more difficult if older?

Thanks for any advice

Lou

glosoli

Different lenders have different criteria for who is classified as a first time buyer. Some might be if one or either applicant has a property at the moment, or if not had in the past twelve months. In any case, I wouldn't get caught up in these definitions too much. As you have had properties before however you would not be a first time buyer in the eyes of the Help to Buy scheme.

In terms of the age, the only issue that this may have is the shorter the mortgage terms, the higher the repayments, therefore reducing the amount which can be borrowed.

Lilla_D

Indeed lenders differ about how they define first time buyer - most say that you're a FTB if you've never had a property before. However, Help to Buy is available to non-FTBs as well as long as the new property will be the only property you own.

Self-employment is not a problem, lenders just have their own rules for calculating income and for acceptable proof. E.g. if your husband is a sole trader, it'd be his profit before tax that counts, but then it depends on the lender whether they use the latest year or average the last 2-3 years. If he's a Ltd company director, then they might use his salary + dividends or his share of the profit + salary. If he's a contractor, then his income could be based on his contract rate. If you speak to a broker, they'll be able to advise you as appropriate.