Mortgage advice - first time buyer (or not..)...proof of deposit...etc

vroombroom

Afternoon, after some advice if possible as our mortgage broker seems to have scarpered....I'll also apologise in advance as my post is longwinded and I hope I don't miss anything out.

So in 2014 OH and I 'bought' a house through a scheme engineered through our local housing association. No deposit was required, but we accumulate shares every year. There was never a mortgage arranged - we pay them monthly. We saw a financial advisor and a solicitor, who both agreed it was a good scheme, legal docs were signed with the sol and we moved in.

It's known as a home purchase plan and we've maintained the house since we moved in. The scheme ended in 2016 however we have had a contact at the housing association since if we've had any issues.

In 2017 we had another baby and the house was too small. We contacted them about our options to sell the house and move. They had first refusal and refused due to the scheme no longer being there. Fair enough. So we put it on the market and as long as we achieved their settlement figure, we could sell. If it was below the settlement figure, we would have to pay the difference.

18 months later and several really low offers on the house, we're still here. We went to look at part exchanging at the weekend and this is where we first got in contact with a mortgage broker.
As there is no mortgage in place on our current property we could be deemed as first time buyers - well my OH is not me, which is fine. So he found us a few deals based on the shares we own in the house but these were based on the HTB and gov loan which we want to steer away from (just based on the experience we've had with the scheme we are in).

Then our last option: buy the house ourselves, then try sell at later date and not be tied in with the scheme. Short version of where all our confusion lies: the settlement figure from the scheme is around £116k, but the house is valued at £125k. If we were to get a mortgage for £125k (we had a decision in principle for this figure at the weekend for the HTB), we'd have shares at £9k and we could use this as our deposit.

Now this is where we are stuck and why I think the mortgage advisor has ran:rotfl::rotfl: would OH be classed as a first time buyer? Would a letter from the housing association scheme be deemed enough evidence as confirmation of our shares and deposit?

If anyone can offer advice, I'd be so grateful. Thank you for reading too!

[Deleted User]

Does it matter? If you are buying together then you are paying normal stamp duty so what's to gain by being a first time buyer?

vroombroom

Sorry, I mustn't have explained properly - I'm not bothered about being a first time buyer but what do we put down as our status when applying? Remortgaging? Moving home?

[Deleted User]

Depends on the lender. Some let you be a first time buyer as it makes people think better deals are available for ftb's. There used to be, but not so much anymore.

I'd say 99% of lenders will call you a homemover. You are kind of buying your landlords house (not exactly) and it's not an uncommon transaction

vroombroom

Deleted_User wrote: »

Depends on the lender. Some let you be a first time buyer as it makes people think better deals are available for ftb's. There used to be, but not so much anymore.

I'd say 99% of lenders will call you a homemover. You are kind of buying your landlords house (not exactly) and it's not an uncommon transaction

That's absolutely spot on and makes sense, thank you so much!

ftm1983

This was my original post, I had to change my login details! 
Couple of weeks on and we're really struggling to find a mortgage. The broker eventually got back in contact and has had several straight nos from lenders due to not understanding the scheme. We're waiting for some advice from the housing association to see if they can point us in some way, so hopefully we'll get somewhere.