I'm a first time buyer partner isn't.....advice please

hannahroberts1985

Evening,

Thank you in advance for any advice given.

A quick run down of our situation:

I'm a first time buyer £4500 ish debt in my name working part time (currently just finished mat leave so last 6 months pay slips refelect a much lower income than I am on now) £16,000 income yearly

Partner owns a small house with his step dad that they rent to his uncle. Mortgage gets covered each month by the rent. DP works full time basic salary £15,000 but with commission roughly £27,500 yearly.

We have £10000 deposit and are looking at a new build for £152500

I initially though the help to buy 5% would work for us but am I right in thinking as DP owns another house this would cance us out of this.

I know some banks offer 5% deposits these days but am I right in thinking these are not available on new builds?

We're thinking we need to go talk to someone.......a mortgage advisor or a broker....are these the same?

Apologies I'm clueless.

ACG

They are the same so either will do, just ensure they are truly whole of market (not representative of the whole of market), the difference is around 10 lenders to 50 lenders.

5% deposits are available on new builds but only with 2 lenders (that I am aware of) Kingstreet is the man for that question I think.

You will not be eligible for help to buy with your partner being on another Mortgage. I am not sure if you would also be liable for higher rate of stamp duty or not.

hannahroberts1985

Kingstreet? Who's that sorry?

Oh I didn't think about it effecting the stamp duty. Thanks for the heads up best to be prepared.

amnblog

You won't get help to buy unless your partner sells the other property.

If you both buy another property and your partner keeps the current one, expect an extra £4,500 on your stamp duty land tax bill.

hannahroberts1985

£4500? Really he's first property is worth £80,000 does that change things at all?

Thank for your help

Number75

The SDLT is payable on the house you're buying together, not the one he already owns. So the £80K value isn't relevant.
It's a higher rate of SDLT when you buy a second property. I believe you can claim the extra charge back if you sell the first property within 3 (?) years - but as it's rented to his uncle, doesn't sound like selling is the plan?

hannahroberts1985

I've looked up a bit about it but can't see what the higer rate is? Is it 15%?

ACG

3% of the first £125k 5% of the next £125k.
So on £152k it would be £3750 (3% of £125k) plus £1350 (5% of £27k) making £5,100 - if I have done my sums correctly.

amnblog

£5,125 on £152,500

hannahroberts1985

Ok thanks for the heads up guys.

sjbrun

As it's your partner that already has the house, you could ask him to pay the difference in stamp duty that you now have to pay since he has a home already. Just depends on your relationship.