Named person on a mortgage, applying for first time buyer?

Terry6680

OK, many years ago my wife agreed to be a 'named person' on her brothers mortgage after a messy divorce which meant he could keep the house as apparently he couldn't have the mortgage under just his name alone due to his earnings.

After a year or two later, the house was sold and said brother bought a new property with his new partner, my wife came off.

Now, the question is.... if myself and my wife decide to open up two LISA accounts and save a decent amount and also use the annual bonus schemes to apply for a mortgage, hopefully using the 'First time buyer scheme' but will the fact that my wife was named under this property affect us using this scheme and applying as first time buyers as she didn't as far as she knows actually apply for a mortgage herself!?

Sorry if this isn't clear, the details are sort of vague but just seeing if anyone has been in this situation before?

[Deleted User]

Terry6680 wrote: »

OK, many years ago my wife agreed to be a 'named person' on her brothers mortgage after a messy divorce which meant he could keep the house as apparently he couldn't have the mortgage under just his name alone due to his earnings.

After a year or two later, the house was sold and said brother bought a new property with his new partner, my wife came off.

Now, the question is.... if myself and my wife decide to open up two LISA accounts and save a decent amount and also use the annual bonus schemes to apply for a mortgage, hopefully using the 'First time buyer scheme' but will the fact that my wife was named under this property affect us using this scheme and applying as first time buyers as she didn't as far as she knows actually apply for a mortgage herself!?

Sorry if this isn't clear, the details are sort of vague but just seeing if anyone has been in this situation before?

Your wife did apply for the mortgage otherwise she wouldn't have been on it.

Does she meet the definition of a FTB with regards to a LISA? How was the property owned with her brother? Was it owned a joint tenants or as tenants in common with a Deed of Trust in place or solely in her brother's name?

https://www.helptobuy.gov.uk/documents/2015/12/eligibility-of-ftbs.pdf/

Terry6680

So after more digging, albeit back in 2008, It appears that my wife had to go through the mortgage application from scratch as a joint applicant with her brother of which they were successful in obtaining the mortgage, she was taken off it in 2013, however there are some websites who seem to indicate that if you haven't owned a property in 3 years then you might be considered a 'first time buyer' again, im doubtful in all honesty!

Retired_Mortgage_Adviser

This is how the government defines an FTB.

"A first time buyer is defined as an individual or individuals who have never owned an interest in a residential property in the United Kingdom or anywhere else in the world and who intends to occupy the property as their main residence."

So, if your wife was named in the deeds for the 2008 property, then she no longer qualifies as an FTB as per the above definition.

Otoh, if it was a Joint Borrower, Sole Proprietor mortgage, with your wife named on the mortgage but not on the deeds, then she's (as per my understanding) still an FTB.

kingstreet

Yep. Was she a borrower and a proprietor, or simply a borrower?

Guarantor products such as joint borrower, sole proprietor mean you are not party to the ownership.