First time buyer possible loopholes?

M47

This thread is aimed at professionals with expertise.

So my little brother (who is a first time buyer) has applied for a mortgage (first time buyer 95%).

His broker came bank will several offers from lenders.

His job requires him to be in Birmingham for part of the week and london for other times. He has been contemplating purchasing 2 properties for this reason (1 in Birmingham and 1 in london).

Now at the moment he is technically a first time buyer and has been offered both offers on this basis(him being a first time buyer).

He has not explained his new plans to purchase 2 properties to the lenders, as this is a new thought (as he originally only intended on just purchasing one home)

I know this question is a little bit cheeky but if he accepted both offers and completed on both properties on the exact same day would he be doing anything wrong? As he would have technically been a first time buyer but he just would have purchased 2 properties at the same time.

And would he still be liable for the first time buyer stamp duty discount on both properties if he completed on both properties at the same time?

Very cheeky I know, but could that be a loop hole for his scenario?

k3lvc

Personally I think you should set up a Property Consultancy for all your 'friends' that have weird and wonderful issues with their potential purchases :rotfl:

In this situation are you genuinely suggesting that your 'brother' can purchase 2 properties in Birmingham and London via 95% mortgages with neither being the primary residence yet both 'benefitting' from some first time buyer deal ?

Given the moneysaving part of the site there must be a better way of doing this given his obvious wealth that doesn't involve a 'loophole'

davidmcn

It's progressed from "a little bit cheeky" to "very cheeky" in only two paragraphs, so I suspect in a few moments' time it will become "downright fraudulent"...

somethingcorporate

M47 wrote: »

This thread is aimed at professionals with expertise.

Stop right there, you're in the wrong place.


Professionals, with expertise (and culpability if it all goes wrong) cost money.


This is an anonymous internet forum with zero accountability for all and any "advice" you receive.


See the difference?

kingstreet

Each mortgage application should be disclosed to the lender on the other.

Only one purchase will be SDLT-exempt. The other will be subject to the SDLT second property surcharge.

Teamocil

Your brother should pay his damn tax.

Potbellypig

Best case: They both go through and fine and dandy, and you get no comebacks on them.

Worst case: You get found out, lose the money on account of you committing fraud, and also get a CIFAS mark against you.



Your call.

amnblog

Lenders do not work in isolation from each other and HMRC and the Land Registry are keen chums.

If he continues down this road, your Brother will fall flat on his face.

Be ready to pick him up.

DontBringBertie

So a ‘friend’ is planning on getting two 95% mortgages and planning on live half a week in one and half in the other?

This sort of person would be bankrupt in 10 years.

dimbo61

The start of a property empire.
This time next year we will be millionaires.
Rodney you plonker said Del Boy

MortgageAdviserTorquay

Lenders before you complete generally do another credit check before going to completion, this would probably flag up that there are two mortgages on the go, and therefore stamp duty would be payable on one of them. Also they would want to re-check affordability. I would call up the lenders and question what would be the consequences without giving your details