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  • FIRST POST
    • bclbcl
    • By bclbcl 15th May 19, 5:28 PM
    • 11Posts
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    bclbcl
    New mortgage
    • #1
    • 15th May 19, 5:28 PM
    New mortgage 15th May 19 at 5:28 PM
    Hello,

    My wife currently owns a property. I am looking to buy an additional property on my own and use it as a residence. As i understand since my wife already owes a property i lose the stamp duty tax relief which is not a problem.

    Question - Since i am no longer considered as a first time buyer, how much deposit would i need to keep upfront? Will it be 10% percent or will i need 20% deposit as i am not considered as first time buyer?
Page 1
    • getmore4less
    • By getmore4less 15th May 19, 5:52 PM
    • 36,237 Posts
    • 22,317 Thanks
    getmore4less
    • #2
    • 15th May 19, 5:52 PM
    • #2
    • 15th May 19, 5:52 PM
    Don't forget additional SDLT.


    Deposit is whatever your proposed lender will accept.
    • AnotherJoe
    • By AnotherJoe 16th May 19, 9:19 AM
    • 14,638 Posts
    • 17,472 Thanks
    AnotherJoe
    • #3
    • 16th May 19, 9:19 AM
    • #3
    • 16th May 19, 9:19 AM
    There are two different deposits.
    There's the up front deposit when you exchange contracts. Classically 10% but often less than that in chains and negotiable, it's whatever the vendor will accept.
    Then there's the deposit which together with the mortgage makes up the money used to buy the house. This deposit includes the upfront deposit and the difference is paid at completion.
    So, say it's a 200k house, you are getting a 75% mortgage so have 50k cash. At exchange you pay 10% (if that's what's agreed) , 20k. At completion you hand the remaining 30k over.
    As said you'll also need to pay an extra 6k in SDLT as well.
    Last edited by AnotherJoe; 16-05-2019 at 10:51 AM.
    Please dont criticise my spelling. It's excellent. Its my typing that's bad.
    • bclbcl
    • By bclbcl 16th May 19, 12:45 PM
    • 11 Posts
    • 0 Thanks
    bclbcl
    • #4
    • 16th May 19, 12:45 PM
    • #4
    • 16th May 19, 12:45 PM
    There are two different deposits.
    There's the up front deposit when you exchange contracts. Classically 10% but often less than that in chains and negotiable, it's whatever the vendor will accept.
    Then there's the deposit which together with the mortgage makes up the money used to buy the house. This deposit includes the upfront deposit and the difference is paid at completion.
    So, say it's a 200k house, you are getting a 75% mortgage so have 50k cash. At exchange you pay 10% (if that's what's agreed) , 20k. At completion you hand the remaining 30k over.
    As said you'll also need to pay an extra 6k in SDLT as well.
    Originally posted by AnotherJoe

    How did you get the 6000 for SDLT? For 200k would it not be 7500 for stamp duty ?

    I would ideally like to get 90% mortgage and put 10% deposit (20k) , do you think lenders will have a problem giving me a mortgage since i am not considered a first time buyer? (i am not worried about passing mortgage stress test etc, just wondering if i'll able to get a 90% mortgage if i am considered as second time buyer)
    • MovingForwards
    • By MovingForwards 16th May 19, 1:07 PM
    • 1,237 Posts
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    MovingForwards
    • #5
    • 16th May 19, 1:07 PM
    • #5
    • 16th May 19, 1:07 PM
    Is it going to be YOUR permanent and main residence?
    • AnotherJoe
    • By AnotherJoe 16th May 19, 4:08 PM
    • 14,638 Posts
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    AnotherJoe
    • #6
    • 16th May 19, 4:08 PM
    • #6
    • 16th May 19, 4:08 PM
    How did you get the 6000 for SDLT? For 200k would it not be 7500 for stamp duty ?

    I would ideally like to get 90% mortgage and put 10% deposit (20k) , do you think lenders will have a problem giving me a mortgage since i am not considered a first time buyer? (i am not worried about passing mortgage stress test etc, just wondering if i'll able to get a 90% mortgage if i am considered as second time buyer)
    Originally posted by bclbcl

    6k extra. I did underline "extra". I've put it in red this time as well

    (yes, the total comes to 7,500)



    What you will be lent is based on affordability not whether you are a FTB.
    Please dont criticise my spelling. It's excellent. Its my typing that's bad.
    • bclbcl
    • By bclbcl 16th May 19, 6:08 PM
    • 11 Posts
    • 0 Thanks
    bclbcl
    • #7
    • 16th May 19, 6:08 PM
    • #7
    • 16th May 19, 6:08 PM
    Yes it will be main residense
    • bclbcl
    • By bclbcl 16th May 19, 6:09 PM
    • 11 Posts
    • 0 Thanks
    bclbcl
    • #8
    • 16th May 19, 6:09 PM
    • #8
    • 16th May 19, 6:09 PM
    6k extra. I did underline "extra". I've put it in red this time as well

    (yes, the total comes to 7,500)



    What you will be lent is based on affordability not whether you are a FTB.
    Originally posted by AnotherJoe
    Got it thanks
    • amnblog
    • By amnblog 16th May 19, 6:11 PM
    • 11,145 Posts
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    amnblog
    • #9
    • 16th May 19, 6:11 PM
    • #9
    • 16th May 19, 6:11 PM
    90% mortgages are not limited to first time buyers
    I am a Mortgage Broker

    You should note that this site doesn't check my status as a Mortgage Broker, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.
    • bclbcl
    • By bclbcl 16th May 19, 6:34 PM
    • 11 Posts
    • 0 Thanks
    bclbcl
    90% mortgages are not limited to first time buyers
    Originally posted by amnblog
    When considering for a mortgage will the lender assume it as a second mortgage since my partner owns a home - even though this property i will be buying it on my own and i dont have any other mortgages?
    • AnotherJoe
    • By AnotherJoe 16th May 19, 8:24 PM
    • 14,638 Posts
    • 17,472 Thanks
    AnotherJoe
    When considering for a mortgage will the lender assume it as a second mortgage since my partner owns a home - even though this property i will be buying it on my own and i dont have any other mortgages?
    Originally posted by bclbcl
    If you read that back you will clearly see it's your first mortgage !
    I think you've got confused with the near to meaningless "first time buyer" phrase.
    Please dont criticise my spelling. It's excellent. Its my typing that's bad.
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