First time buyer deals - would I qualify?

Capri84

So... 10 years ago I owned a property which I sold and have since then rented. I made no profit from the house. 

Since that time I’ve rented, and have now got together enough for a reasonable 5% deposit, however I note that a lot of the new 5% deals are for ‘first time buyers’. I also note that when running calculations through lenders affordability calculators, there are various options to select as to why you need the mortgage... such as ‘first time buyer’ ‘I am remortgaging’ or ‘I am buying a second home’... but there is no explicit ‘I’m not technically a first time buyer but I don’t own a property....’ option. 

So yeah, where do I stand?

Also, my wife has never owned a property and will be a joint applicant... although she only earns £6k against my £60k. I believe this might be enough to allow a joint application as first timers, but not sure.. especially with the earnings so heavily on the ‘non first timer’ side. 

K_S

@Capri84 Different lenders define FTBs in different ways. For example, for one lender it may be "hasn't owned a property in last 3 years", for another it may be that they've never owned a property, for some lenders its even as low as 12 months and some only need one of the applicants to qualify, etc.

So your situation could well fit eligibility for lender A as an FTB (as your wife is an FTB), but fail lender B because of you having owned a property in the past. I hope that makes sense.

Capri84

Thanks KS 

to clarify, on my own is there a possibility that some lenders might consider me as a FTB?

K_S

Capri84 said:

Thanks KS 

to clarify, on my own is there a possibility that some lenders might consider me as a FTB?

@capri84 Yes, you will be classed as an FTB by some lenders due to the length of time - off of the top of my head this can range from 12 months to 6 years. If you pushed me to put a percentage to it I would say about 40% of lenders would class you as an FTB.

Just to be clear this is only referring to lender policy, unrelated to the government definition of FTB, which is where the big savings coming in.

To be absolutely honest, in monetary terms, being seen as a FTB by a lender is not of a huge value - perhaps a small cashback. Most product "FTB exclusives" are matched by other non-FTB products. 

Capri84

Thanks again. It was more; if the 95% mortgages are restricted to first time buyers am I going to be left waiting to put together a 10% deposit. 

Looks like I might have a chance though. Cheers 

K_S

Capri84 said:

Thanks again. It was more; if the 95% mortgages are restricted to first time buyers am I going to be left waiting to put together a 10% deposit. 

Looks like I might have a chance though. Cheers 

@capri84 I wouldn't worry about that possibility. The govt scheme doesn't restrict it to FTBs and lenders will not sit on the sidelines watching their competition take advantage.

BOI already has a 95% product that is open to non-FTBs. Keep an eye on this thread for new product details.
https://forums.moneysavingexpert.com/discussion/6250851