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Avoiding stamp duty

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izgo
izgo Posts: 9 Forumite
Tenth Anniversary First Post Combo Breaker
in House buying, renting & selling
If I’m a first time buyer, is there anything stopping me from buying a house on a residential mortgage to avoid stamp duty and then switching it to a buy to let? 

Comments

  • Emmia
    Emmia Posts: 5,667 Forumite
    Fifth Anniversary 1,000 Posts Photogenic Name Dropper
    izgo said:
    If I’m a first time buyer, is there anything stopping me from buying a house on a residential mortgage to avoid stamp duty and then switching it to a buy to let? 
    Are you planning to actually let the property? If so, why not buy as a BTL in the first place? 

    You'll lose your FTB discount which ever you opt for. 
  • kinger101
    kinger101 Posts: 6,572 Forumite
    Part of the Furniture 1,000 Posts Name Dropper
    edited 19 January at 5:39PM
    The FTB rates only apply if you are buying a property to live in.  And you cannot get a residential mortgage if you don't live in the property.

    So potentially criminal records for tax evasion and mortgage fraud.
    "Real knowledge is to know the extent of one's ignorance" - Confucius
  • user1977
    user1977 Posts: 17,840 Forumite
    10,000 Posts Seventh Anniversary Photogenic Name Dropper
    Also, you’re not even a first time buyer…
  • EssexHebridean
    EssexHebridean Posts: 24,424 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Photogenic
     https://forums.moneysavingexpert.com/discussion/5135982/remortgage-to-buy-another-house#latest

    In case of any confusion - the question your solicitor will ask you is whether you have ever owned a property either in the U.K. or elsewhere. It would appear that in your case the answer is “yes”. 
    🎉 MORTGAGE FREE (First time!) 30/09/2016 🎉 And now we go again…New mortgage taken 01/09/23 🏡
    Balance as at 01/09/23 = £115,000.00 Balance as at 31/12/23 = £112,000.00
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  • Emmia
    Emmia Posts: 5,667 Forumite
    Fifth Anniversary 1,000 Posts Photogenic Name Dropper
    kinger101 said:
    The FTB rates only apply if you are buying a property to live in.  And you cannot get a residential mortgage if you don't live in the property.

    So potentially criminal records for tax evasion and mortgage fraud.
    And you normally can't live in your BTL.
  • Bookworm105
    Bookworm105 Posts: 2,016 Forumite
    1,000 Posts First Anniversary Name Dropper
    edited 19 January at 6:04PM
    so your question is: will I be caught if I attempt tax fraud?
    answer: it depends how lucky you feel....
  • izgo
    izgo Posts: 9 Forumite
    Tenth Anniversary First Post Combo Breaker
    Just to confirm this isn’t for me. Someone I know is looking to do this and asked my opinion. I said I don’t know but I’d find out. 
  • EssexHebridean
    EssexHebridean Posts: 24,424 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Photogenic
    izgo said:
    Just to confirm this isn’t for me. Someone I know is looking to do this and asked my opinion. I said I don’t know but I’d find out. 
    In which case Kinger101’s comment applies. 
    🎉 MORTGAGE FREE (First time!) 30/09/2016 🎉 And now we go again…New mortgage taken 01/09/23 🏡
    Balance as at 01/09/23 = £115,000.00 Balance as at 31/12/23 = £112,000.00
    Balance as at 31/08/24 = £105,400.00 Balance as at 31/12/24 = £102,500.00
    £100k barrier broken 1/4/25
    SOA CALCULATOR (for DFW newbies): SOA Calculator
    she/her
  • GDB2222
    GDB2222 Posts: 26,240 Forumite
    Part of the Furniture 10,000 Posts Photogenic Name Dropper
    izgo said:
    If I’m a first time buyer, is there anything stopping me from buying a house on a residential mortgage to avoid stamp duty and then switching it to a buy to let? 
    Is your friend planning to live in it for a while? 
    No reliance should be placed on the above! Absolutely none, do you hear?
  • Mr.Generous
    Mr.Generous Posts: 3,975 Forumite
    Part of the Furniture 1,000 Posts Photogenic Name Dropper
    A mate of mine tried to get a BTL mortgage with no residential mortgage and no owned property. (He lived with a girlfriend) and couldn't find anyone who offered a BTL in his circumstances.
    Mr Generous - Landlord for more than 10 years. Generous? - Possibly but sarcastic more likely.
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