Help!!! I’m so confused...

shelliz1981

I bought my flat ( cash purchase)  in 2011 with the help of my parents as I was unable to get a mortgage myself at the time. On the deeds we own half each but anything above what we paid will be mine. I am wanting to move and get a mortgage but I am so confused- would I be classed as a first time buyer as I’ve never had a mortgage before? What about the deposit? Obviously I don’t have one saved but whatever the flat is bought for would be used towards my next home. If I wanted my parents on the deeds would they have to be taken in to account on any mortgage application? I’ve been going round in circles trying to find answers. 

Thanks in advance. 

Windofchange

You are not a first time buyer as you have owned a property, regardless of how you came to do so. With the deposit, you can utilise any sale equity in your current house toward your next purchase. As for the deeds, why would you want your parents on the deeds of the new place? Surely you sell your current home, split the money as agreed and then use your share to get something new? If you want your parents on the deeds for the purposes of increasing your mortgage loan then yes, they will need to have their income and other such things assessed in line with anyone purchasing a property. 

Splatfoot

No, it's about Home ownership, not mortgages. So no, you will not be classed as a ftb 

NewShadow

Windofchange said:

 If you want your parents on the deeds for the purposes of increasing your mortgage loan then yes, they will need to have their income and other such things assessed in line with anyone purchasing a property. 

Don't forget to factor in that your parents being co-owners may make you liable for stamp duty at an enhanced rate if it's counted as a second property for them - and they could be liable for tax on their share should there be an increase in value of the property when you come to sell. 

Generally I understand in these situations it's better for them to 'gift' you the money and you simply have an agreement between yourselves to pay them back when you can/when the property is eventually sold - if it's not a contractual obligation/if your parents don't have a legal/beneficial interest in the property the lenders tend to be much happier about the arrangement.