How to qualify for first time buyer

maximw1234

Hi guys, I’m looking for an advice 

so I currently got a mortgage with my mum. This mortgage will be paid off this month. 

My question is, if I remove my self from the property can I be qualified as a first time buyer when purchasing a new property with my girlfriend? 

And if I can do that, where do I start? Will I need to contact a solicitor? 

Apologise if it’s a silly question 😂 just don’t fancy paying %3 stamp duty plus I can only put down %10 rather than %15 

dimbo61

So next month you won't have a mortgage.
Is the property in both names ?
If you buy a new property with your GF then you own 2 properties and get to pay 3% extra stamp duty.
Unless you can sell or gift your 50% of the property to Mum 

maximw1234

dimbo61 said:

So next month you won't have a mortgage.
Is the property in both names ?
If you buy a new property with your GF then you own 2 properties and get to pay 3% extra stamp duty.
Unless you can sell or gift your 50% of the property to Mum 

Hi, my plan is to only own one property. Will I need to get a solicitor to help me to gift my other half to my mum? 

Carl2510

Simple answer no, as you’ve already owned one you are considered to of been a homeowner 

dimbo61

So why do you need to be a FTB ? 
Having a 15/20/25% deposit, good income and clean credit score is more important than the FTB name unless you have HTB ISA or LISA ISA 
You need to speak to a solicitor and accountant about giving away a large asset 

MovingForwards

Being a FTB is like being a virgin, pop your cherry and that's it, it's gone. 
No government incentives are available eg LISA.
If you are quick and offload the current house, you could use H2B equity, but even that's ending for non-FTB.

[Deleted User]

If you've owned or part owned a property any where in the world at any time in your life then you are unfortunately not a first time buyer. 

Verix

maximw1234 said:

Hi guys, I’m looking for an advice 

so I currently got a mortgage with my mum. This mortgage will be paid off this month. 

My question is, if I remove my self from the property can I be qualified as a first time buyer when purchasing a new property with my girlfriend? 

And if I can do that, where do I start? Will I need to contact a solicitor? 

Apologise if it’s a silly question 😂 just don’t fancy paying %3 stamp duty plus I can only put down %10 rather than %15 

I think there has been some confusion in this thread as to the stamp duty rules and what the first-time buyer status may mean.
In regards to the stamp duty, the 3% you mention is for people buying a second property. If you own a property with your mum and buy another property with your girlfriend you will then own two properties. Let's say you buy a property worth £250,000, you will have to pay the normal stamp duty cost of £2,500 plus the 3% charge of £7,500. Understandably this is something you'd want to avoid. You would therefore need to ensure that you won't own two properties at the end of the new transaction. You could do this buy transferring the equity to your mum, but this is something you'd have to really think about and get advice on. 

You ask whether removing yourself from the property means you can be considered a first-time buyer. Neither lenders nor HMRC will consider you a first-time buyer by doing this, however you wouldn't have to pay the 3% additional charge as you will only own one property at the end of the transaction. Having said that you would normally need to pay the regular stamp duty element (in the above example of £250,000 you'd need to pay the £2,500) however, at the moment there is a stamp duty holiday so you wouldn't even have to pay providing you complete by March.

You also mention not having a 15% deposit and can only put down 10%. This is a slightly different issue which is in relation to mortgage lenders criteria. I think you have probably been specifically looking at Nationwide's criteria as they can currently offer 10% deposit mortgages to first-time buyers but not existing home-owners. There still may be other alternative options to consider at the 90% LTV end of the market but you'll probably want to speak to a mortgage broker about these as most high street lenders aren't offering anything at that end of the market.

I've also assumed in this that you do own the house with your mum and weren't acting as a guarantor or as the helper on a joint borrower sole proprietor kind of mortgage. Good luck with it all.